Sebi bars Gammon Infra’s ex-CMD in insider trading case

In another crackdown on insider trading, the Securities and Exchange Board of India barred the promoter and former CMD of Gammon Infrastructure Projects, Abhijit Rajan, from the securities market after it found that he violated insider trading regulations while dealing in the shares of the company. The order comes two days after the regulator passed an order banning B Ramalinga Raju for 14 years from the securities market on allegations on making unlawful gains on the basis of access to ‘unpublished price sensitive information’. The order passed by Rajeev Kumar Agarwal, whole-time member of Sebi said that the prohibitory orders would continue till further orders are issued by Sebi. The capital markets regulator is still investigating the matter relating to trading in shares of Gammon Infrastructure on the basis of access to ‘unpublished price sensitive information’ in the period between August and September 2013. While Rajan served as chairman and MD of Gammon Infrastructure till September 20, 2013, he indirectly owns 29% in Gammon India which is the promoter of Gammon Infra. Rajan, however, continues to remain chairman and MD of Gammon India. Sebi has sought a reply, if any, within 21 days from Rajan. This is not the first time that Rajan has violated Sebi norm. Earlier in December 2006, Sebi had debarred Rajan for one year from accessing the capital markets for his alleged irregularities in the rights issue of Gammon India.