SEC charge-sheets 3 In­di­ans in in­sider-trad­ing case

The Hindu Business Line - - MARKET RADAR -

An In­dian IT con­trac­tor, his wife and fa­ther have been charged in the US with in­sider trad­ing af­ter he il­le­gally tipped them with con­fi­den­tial client in­for­ma­tion he stole while work­ing in the Sin­ga­pore branch of an in­vest­ment bank.

Ra­jesh­war Gan­na­ma­neni, 36, is a cit­i­zen of In­dia with a last known res­i­dence in Sin­ga­pore. He pro­vided non-pub­lic in­for­ma­tion about im­pend­ing merg­ers, ac­qui­si­tions, and ten­der of­fers to his wife, Deepthi Gan­dra, 33, and his fa­ther, Linga Rao Gan­na­ma­neni, 68, who lives in In­dia, the Se­cu­ri­ties and Ex­change Com­mis­sion said in a state­ment.

The SEC ob­tained a cour­tordered freeze of as­sets in three US bro­ker­age ac­counts and one US bank ac­count con­nected to the al­leged trad­ing. The SEC’s com­plaint al­leges that be­tween De­cem­ber 2013 and Au­gust 2016, Gan­na­ma­neni abused his po­si­tion as a se­nior soft­ware con­sul­tant at the in­vest­ment bank and ac­cessed sen­si­tive, highly-con­fi­den­tial in­for­ma­tion con­cern­ing at least 40 merg­ers, ac­qui­si­tions, ten­der of­fers and other sig­nif­i­cant cor­po­rate events of the in­vest­ment bank’s clients.

Gan­na­ma­neni then il­le­gally traded on that in­for­ma­tion and shared it with his fa­ther and wife who un­law­fully traded on it, col­lec­tively re­al­is­ing il­licit prof­its of about $6,00,000.

He also al­legedly traded in an ac­count that he con­trolled that was opened in the name of a fam­ily mem­ber, who was liv­ing in the US at the time.

“As al­leged in our com­plaint, Gan­na­ma­neni abused his work-re­lated ac­cess to sen­si­tive, mar­ket­mov­ing, non-pub­lic in­for­ma­tion to en­rich him­self and those he tipped,” said Kelly L Gibson, As­so­ciate Di­rec­tor of En­force­ment in the SEC’s Philadel­phia Re­gional Of­fice.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.