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Sebi directs JPL company secretary to disgorge gains in insider trading case

Press Trust of India  |  New Delhi 

Markets regulator Sebi Thursday directed Jagran Prakashan's and his wife to disgorge unlawful gains of Rs 10.41 lakh in an case.

The regulator in an order held that and his wife had traded in the shares of while in possession of two unpublished price sensitive information (UPSI).

"Noticees (Amit and Mansi) are liable to disgorge the entire amount of Rs 10.41 lakh impounded vide ad-interim ex-parte order dated November 20, 2015," the regulator said.

The regulator in 2015 had ordered to impound unlawful gains of Rs 10.41 lakh after its probe found that and traded in JPL shares while in the possession of UPSI.

The regulator had conducted the investigation from August to October 2009 to examine any possible violations of Sebi norms.

During the probe, Sebi found that both entities traded in the scrip of JPL during the declaration of interim dividend and announcement of financial results for the quarter ended September 2009.

Besides, Kanchan Properties, part of and group of Jagran, had decided to sell shares of the company in the open market to raise about Rs 40-42 crore.

Jaiswal had prior knowledge of the group entity's decision to sell such substantial quantity of the scrip that could impact the company's share price.

In a fresh order, the regulator said Amit Jaiswal and have traded in the scrip while in possession of two UPSI i.e. declaration of interim dividend and sale of shares held by Kanchan.

The trading while in possession of UPSI violated PIT (Prohibition of Insider Trading) regulations, (Sebi) said.

Accordingly, Sebi directed that Rs 10.41 lakh impounded by it through 2015 order, shall be disgorged and credited to the established by the regulator.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 21:15 IST