Markets regulator Sebi has ordered impounding of more than Rs 1.38 crore from Tara Jewels Ltd's chairman and managing director Rajeev Vasant Sheth and his daughters for indulging in insider trading in the company's share.
His two daughters, Aarti Sheth and Divya Sheth, were employed as the company's vice presidents.
The regulator ordered impounding of Rs 1.26 crore, Rs 9.62 lakh and Rs 2.09 lakh from Rajeev Vasant Sheth and Divya Sheth and Aarti Sheth, respectively, for "unlawful" notional loss avoided by them, according to the interim order passed on Friday.
They avoided such unlawful notional loss by trading in Tara Jewels Ltd shares on the basis of unpublished price sensitive information information (UPSI) pertaining to the company's poor quarterly results during the quarter ended September 30, 2017, Sebi noted.
Rajeev Vasant Sheth, by virtue of being the CMD of TJL, was aware of the company's poor quarterly financial performance and had sold over 30 lakh shares of the firm during the UPSI period (October-November, 2017).
Besides, Divya and Aarti offloaded their entire shareholding in the company.They had sold the share while in possession of the UPSI with a view to avoid the losses.
"It is prima facie established that Rajeev Vasant Sheth, Aarti Sheth and Divya Sheth being insiders have violated ...the PIT (Prohibition of Insider Trading) Regulations by trading in the shares of TJL while in possession of UPSI, thereby indulging in insider trading" Sebi said.