Sebi fines Jaiprakash group’s senior executives Rs 70 lakh for insider trading

Continuing its crackdown on insider trading,capital market regulator Securities and Exchange Board of India (Sebi) has imposed a penalty totalling Rs 7000000 on three senior executives of Jaiprakash Associates Limited (JP Associates),including Executive Chairman Manoj Gaur and their relatives for involvement in insider trading. Besides Gaur,his wife and brother,Sebi has named JAL’s senior Vice-President (Corporate Affairs) and Company Secretary Harish K Vaid and his Hindu Undivided Family,as well as the company’s Wholetime Director SD Nailwal in the illegal practice. The regulator ran an investigation into the trading of JAL scrips during September 29-October 27,2008. As per the investigation report and replies to Sebi’s showcause notices issued in March,the regulator found that Gaur and others had violated guidelines by purchasing shares during the period when trading was closed. During the period they were in possession of unpublished price sensitive information about the company. Sebi said the company received the trial balances for the quarter ended September 30,2008 from its various units in the first week of October 2008. It said the consolidated trial balance of JAL for the quarter ended September 30,2008 was available on October 12,2008 and the company’s board approved the consolidated quarterly results on October 21,2008 as well as declared interim dividend of 15%. It had also approved issuance of shares on rights basis. “In view of the above,the period from October 11,2008 to October 21,2008 was considered as the period when the information about the financial results and interim dividend was unpublished price sensitive information,” Sebi order said. Gaur,his wife Urvashi Gaur and his brother Sameer Gaur have been fined Rs 1000000 each. Similar fines have been imposed on Vaid and his Hindu Undivided Family,while Nailwal has been handed a total fine of Rs 2000000. The market watchdog had on Wednesday imposed a penalty totalling Rs 6000000 on VK Kaul,former Independent Director of Ranbaxy Laboratories and his wife Bala Kaul for insider trading in the purchase and sale of scrips of Orchid Chemicals and Pharmaceuticals Limited (OCPL). While Kaul has been fined Rs 5000000,his wife Bala Kaul has been handed a fine of Rs 1000000 in a case relating to the sale of 6. Kaul was at that time an independent director of Ranbaxy Laboratories,the holding company of Solrex Pharmaceuticals which bought the shares of OCPL during the period.