The Asian Age

Sebi scans FB ‘ likes’ for proof

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New Delhi, April 19: To catch manipulato­rs, Sebi has started looking at Facebook accounts of suspected persons, with ‘ friends’ and ‘ likes’ for posts being scanned in insider trading cases.

The watchdog checked the Facebook profiles of suspected persons to ascertain whether they were ‘ connected’ in a case related to violation of insider trading norms.

After going through the Facebook profiles in the case related to Deep Industries, Sebi found that the entities involved in insider trading were ‘ friends’ on the social networking site and they they ‘ liked’ each other’s photos on the platform.

“The profiles of these persons were having restricted access and the photos posted by them can be ‘ liked’ only by select persons whom they have added as their ‘ friends’ on Facebook,” the regulator said in an order dated April 16.

After gathering evidence, also through scanning of Facebook posts, about the violations, Sebi has ordered impounding of unlawful gains worth over ` 2.4 crore from three entities involved in the case.

The three entities — Rupeshbhai Kantilal Savla, Sujay Ajitkumar Hamlai and V Techweb India Pvt Ltd — were allegedly ‘ connected entities’ and had traded in Deeep Industries Ltd ( DIL) shares while possessing price- sensitive informatio­n. They had details pertaining to the company bagging three contracts from ONGC and using it the entities made illegal gains, as per Sebi.

According to Sebi, DIL’s MD Rupeshbhai Kantilal Savla and his wife Sheetal Rupesh Savla — also one of the promoters — were acquainted to the two directors of V Techweb — Ajay Ajitkumar Hamlai and Sujay Ajitkumar Hamlai — through Facebook. The Savla couple were also friends with Radhika Hamlai, wife of Ajay Hamlai through the platform.

The regulator found that Ajay and Sujay are associated with DIL by virtue of frequent communicat­ion with Rupeshbhai Kantilal Savla.

By virtue of this associatio­n and frequent communicat­ions, they are reasonably expected to have access to the unpublishe­d price sensitive informatio­n related to DIL in July- October 2015 period.

Under Sebi norms, a person or an entity is considered an insider on the basis of various aspects, including by way of their associatio­n in any capacity with the company concerned and has access to unpublishe­d price sensitive info.

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