"... Restrains Arun Jain from accessing the securities market and further prohibit him from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner for a period of two years from the date of this order," Sebi said.
After a probe into the dealings of shares during August- September 2000, Sebi said it found Jain, CMD and promoter of the company, guilty of norms related to insider trading, as it charged him of trading in the stock on the basis of 'unpublished price sensitive information' relating to a proposed acquisition by the firm.
Sebi said it found that Polaris Software Lab had called off the proposed acquisition of Data Inc, after due diligence, in the second week of September, 2000 but had informed the concerned stock exchanges on September 30, 2000.
"During the investigations, it was observed that the company had deliberately withheld this (proposed acquisition) price sensitive information from the public domain," Sebi (Securities and Exchange Board of India).
Sebi said Jain dealt in 15,080 shares of the company on behalf of Polaris Holding Private Ltd (PHPL) on the basis of 'unpublished price sensitive information' held by him and had made unfair gains to the tune of Rs 27.26 lakh.
During the relevant time, PHPL was one of the promoters entity of Polaris Software Labs and Jain was one of the directors of PHPL.