You are here: Home » Markets » News
Business Standard

Sebi seeks show-cause from PC Jewellers 'insiders', asks for list of assets

The regulator said that the order itself should be considered as a notice by the identified insiders

Jash Kriplani  |  Mumbai 

Jewellers see no sparkle in sales this Dhanteras

The Securities and Exchange Board of India (Sebi) has passed an order in the insider trading case, demanding show-cause from those whom it identified to have benefitted from price-sensitive information pertaining to the company’s buyback announcement and its subsequent withdrawal. It also ordered impounding Rs 8 crore from the alleged insiders.

The order names Shivani Gupta (daughter-in-law of PC Jeweller Chairman Padam Chand Gupta), Padam’s son and Shivan's husband Sachin Gupta, Shivani's brother-in-law Amit Garg, and Quick Developers (QDPL), where Garg was earlier a director.

The order stated QDPL had used the derivative instruments to benefit from the unpublished price-sensitive information (UPSI).

The regulator said the order should be considered as a notice by the identified insiders and they should furnish show-cause, on why they should not be directed to disgorge the amount equivalent to gains or losses avoided through the insider trading, and why they should not be kept off the securities market.

Also, the identified persons and entities were asked to provide a full list of all of their assets and properties.

Balram Garg, MD of PC Jeweller, was also named in the order for his relationship with the alleged violators and asked to show cause as to why he should not be barred from the securities market.

observed after the announcement of the buyback on May 10, 2018, the shares of PC Jeweller were locked at the upper circuit of 10 per cent. After the announcement that the board okayed the withdrawal of the buyback, the scrip hit the lower circuit of 20 per cent.

The preliminary discussion in respect of the proposal for buyback of equity shares -- which took place on April 25, 2018 -- was identified as original for UPSI-I and the refusal for no-objection certificate for the proposed buyback by State Bank of India on July 7, 2018, was considered as the origin point of UPSI-II.

First Published: Tue, December 17 2019. 21:16 IST
RECOMMENDED FOR YOU