Sebi orders seizing of Rs 2-cr gains in insider trading case

Capital markets regulator Sebi has ordered impounding of alleged 'unlawful gains' of over Rs 2 crore from Polaris' promoter Arun Jain and its former CFO R Srikanth after finding them guilty in an insider trading case.
It was alleged that Jain, who was the chairman and managing director of erstwhile Polaris Software Lab (now known as Polaris Consulting and Services), and Srikanth, ex-Chief Financial Officer, had traded in the shares of the company while in possession of 'price sensitive information'.
They had "traded in the shares of Polaris during the unpublished price sensitive information (UPSI) period (i.E. pertaining to the declaration of quarterly financial results and commencement of real estate activities)."

"These persons had traded in the scrip of Polaris while in possession of the UPSI, allegedly in violation of... PIT (Prohibition of Insider Trading) Regulations and have allegedly committed the offence of 'insider trading'... The investigations have also revealed that Srikanth had failed to make the required disclosures... To the company under... The PIT Regulations," it said in an order.
According to Sebi, Jain and Srikanth had made the alleged gains to the tune of Rs 1.85 crore and Rs 19.69 lakh, respectively. This included interest as well.
In an order dated November 24, the markets watchdog has ordered impounding "the alleged unlawful gains of Rs 1.85 crore (from July 18, 2008 to November 24, 2015) made by Jain and Rs 19.69 lakh (from July 18, 2008 to November 24, 2015) made by Srikanth."

In December 2013, Securities Appellate Tribunal (SAT) had set aside a Sebi order that had barred Jain from the securities market for two years on charges of insider trading.