According to Sebi, the two brothers traded in Future Retail shares, which is based on undisclosed price-sensitive statements.
New Delhi: The Securities and Exchange Board of India (SEBI) has imposed a one-year ban on trading in the securities market on Kishore Biyani and his brother Anil, chief executive of Future Group, for insider trading in shares of the company.
According to Sebi, the two brothers traded in Future Retail shares, which is based on undisclosed price-sensitive statements. Trading was done through a group company before the demerger of Future Retail Companies, which raised its share price. Sebi passed an order in 2017 regarding an insider trading case when Future Group restructured some of its companies.
Kishore Biyani did not comment on the question of ABP News. At the same time, a spokesperson of the company also declined to comment, saying that the legal team is studying the order.
ABP News reviewed a copy of the order passed by Sebi full-time member Anant Bairwa, in which Biyani, four others and related entities have been fined Rs 3.7 crore.
The order stated, “To ascertain whether SEBI has traded the aforesaid dividend during March 10, 2017 to April 20, 2017 on the basis of unpublished price sensitive information, SEBI has issued a share of Future Retail Ltd. Was investigated. In violation of the provisions of SEBI Act, 1992 and SEBI (Prohibition of Insider Trading) Regulations, 2015. “
The regulator asked for an amount of at least Rs 20.53 crore to be given to the entities of the Future Group, these companies have made wrong profit according to Sebi estimates. Apart from this, the regulator has also imposed other penalties including future corporate resources and a fine of Rs one crore on the Biyani brothers who have denied the insider trading charges as per the order.
As per the order, the existing shareholding of shares and units of mutual funds of the participating entities will remain constant during the restrained period. However, SEBI has arranged that the proposed arrangement between several entities of Future Group under the leadership of Future Retail Limited and Reliance Retail Ventures Limited will not be hampered.
Sources said that Kishore Biyani (who is separately fighting a legal challenge on behalf of Amazon.com Inc) is likely to challenge the SEBI order.
On Tuesday, a New Delhi court stayed the sale of retail properties of Future Group to Reliance Industries. Future has said that if the transaction fails, then there is a risk of bankruptcy of its retail business. Shares of Future Retail on the BSE closed at Rs 78.10, down 5% on a Mumbai-based firm on Wednesday, taking the company’s value to Rs 4235.24 crore.
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