Sebi Cracks Down on 13 for Al­leged Insider Trad­ing in MCX and FTIL

Pro­mot­ers, key man­age­ment per­son­nel traded based on un­pub­lished in­for­ma­tion

The Economic Times - - Companies: Pursuit Of Profit - Con­tin­ued on COM­MODI­TIES & FI­NANCE

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).

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