Sebi bars Kishore Biyani from securities market for one year
NEW D E LHI: Sebi bar red Ki shore Biyani and cer tain other pr omoters of Future R etail fr om securities mar ket for one y ear f or indulgi ng in insider trading in the shares of the company.
Apart fr om Kishor e Biy ani, f ormer CMD and pr omoter of Futur e R etail Ltd (FRL), others facing ban are Future Corporate R esources Pvt Ltd, Anil Biyani and FCRL Em ployee W elfare Trust. I n addition, the r egulator has imposed a fine of Rs 1 cr ore eac h on Kishore Biy ani, Anil Biy ani and Future Cor porate R esources. Besides , they have been ask ed to disgorg e Rs 17.78 cr ore f or the wr ongful g ains made by them.
Further, Futur e Cor porate Resources and FCRL Employee Welfare Trust have been dir ected to disgorg e Rs 2.7 5 cr ore for the wr ongful g ains made b y it. Anil Biyani and Future Corporate Resources are promoters of FRL. In addition, both Biyanis were dir ectors on the board of Future Corporate Resources. FCRL Employee Welfare Trust is a trust formed by Future Corporate Resources.
Sebi had conducted an investigation in the scrip of FRL to ascer tain whether cer tain persons and entities had traded during the Mar ch 10, 2017 to April 20, 2017 period on the basis of Unpublished Price Sensitive Information (UPSI) pertaining to s egregation of certain business of the firm.
Trading on the basis of U PSI violates provisions of PIT (Prohibition of Insider Trading) norms.
FRL made a corporate announcement to the stock exchanges on April 20, 2017 regarding outcome of its b oard meeting, wherein its b oard approved se gregation of cer tain b usiness of FRL through a composite sc heme of arrangement betw een FRL, Bluer ock eServices Pvt Lt d (BSPL) and Praxis Home Retail Pvt Ltd (PHRPL) and their respective shareholders.
The scheme of ar rangement has, in fact, resulted in the d emerger of certain business of FRL. Sebi found that Future Corporate Resources had traded in the shares of FRL during the UPSI period and made notional unlawful gains of Rs 17.78 crore.