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Sebi relief for Murugappa group officials in insider trading case

Says it will re-investigate the case to find out the role of suspected entities

Shrimi Choudhary  |  Mumbai 

Insider Trading: New rules confound India Inc

The Securities Exchange Board of India (Sebi) has given an interim relief to Group executive chairman A. Vellayan and three others in a four-year-old insider trading case. Sebi on Thursday said that it will re-investigate the case to find out the role of suspected entities.

"The interim order issued against Vellayan, A R Murugappan, Gopalakrishnan C. and V. Karuppiah are accordingly disposed of Sebi to complete the investigation within six months from the date of this order and thereafter, to conclude the matter expeditiously," said market regulator on Thursday.

Regulator also directed all the banks, to release the freeze on the bank accounts of the respective entities, except the bank account of Murugappan with DBS Bank, Anna Salai Branch, wherein he has fixed deposit.

In his interim order of May 2015, Sebi had found that Gopalkrishanan C and V Karuppiah had allegedly traded in the scrip of Sabero Organic Gujarat on the basis of unpublished price sensitive information (UPSI) in 2011 pertaining to the acquisition of shares of Sabero by Coromandel International. The information was allegedly leaked by Coromandel Chairman A Vellayan and his relative A R Murugappan.

On the basis of the findings, Sebi had ordered impounding of Rs 2.15 crore lying in the bank accounts of said individuals with immediate effect. Besides, the regulator has directed to freeze the demat accounts of these individuals in case they do not have sufficient funds in their bank accounts.

First Published: Thu, May 12 2016. 20:10 IST
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