Sebi Cracks Down on 13 for Alleged Insider Trading in MCX and FTIL
Promoters, key management personnel traded based on unpublished information
Mumbai: The Securities and Exchange Board of India (Sebi) has penalised 13 individuals for allegedinsidertradinginshares of MCX and its erstwhile promoter Financial Technologies (now 63 Moons Technologies). They include close relatives of FinancialTechnologiespromoter Jignesh Shah, former senior executives of the company and Bharat Sheth —owner of Great Eastern Shipping, who have beendirectedbythecapitalmarket regulator to impound ₹ 126 crorethattheygainedfromtrading in these shares.
Intwoseparateordersreleased on Wednesday, Sebi’s wholetime member S Raman said these individuals including promoters and key management personnel traded in the shares of MCX and FTIL based on unpublished price-sensitive information. The regulator has directed these individuals not to dispose of or alienate any of their assets,properties and securities till the penalty is credited to an escrow account. These individuals will have to submit why Sebi should not take action against them for alleged violation of insider trading rules.
Sebi’s investigation pertains to the period from April 27,2012 to July 31,2013. The department of consumer affairs had issued a showcausenoticeonApril27following which MCX shares dropped.Sebisaidsomeinsiders tradedinthestockinthisperiod. Those named in the order on 63 Moons Technologies (erstwhile Financial Technologies India Ltd) include Shreekant Javalgekar— MD & CEO of MC X , A s h a S h r e e k a n t J av a l g e k a r — w i f e of Shreekant Javalgekar, Manish P Shah— brother of Jignesh Shah, Prakash Shah— father of Jignesh Shah, Hariharan Vaidyalingam — director of FTIL, V. A r v i n d k u m a r Iyengar— senior VPt e c h n o l o g y, D h a n a s h r i Iyengar— wife of Arvindkumar and Bharat Kanaiyalal Sheth— owner of GE Shipping and brother of Ravi Sheth director of FTIL. In the MCX order, Sebi has ch a r g e d Jo s e p h Massey (director),Shreekant Javalgekar,Asha Shreekant Javalgekar, Paras Ajmera (brother-in-law of Jignesh Shah a nd a d i r e c t o r ) , Anjani Sinha(MD&CEOof NSEL),Tejal M Shah(sister-in law of Jignesh Shah), Hariharan Vaidyalingam(director) and Mehmood Va i d (senior vice president sales and marketing).