HLL refutes insider trading charges

Hindustan Lever Limited (HLL) on Tuesday vehemently denied allegations of insider trading levelled by the Securities and Exchange Board of India (SEBI) and threatened to take up the issue with the Union government and the court, if necessary. HLL chairman Keki Dadiseth said that the company is extremly upset over the way SEBI has handled the entire issue by selective press leakages. “We refute all allegations of insider trading levelled against us by the regulatory authority,” he said. “We have made all transactions in an open and transparent manner and after strictly observing self-discipline and professional ethics in dealing with group companies’ shares. We will reply to the SEBI letter within the stipulated time and take further action based on SEBI reaction to it,” he said. He admitted that the said transaction was carried out to increase Unilever’s holding to 51% in the company. Dadiseth added the purchase transactions by HLL and R Gopalakrishnan, current vice chairman of the group, in the erstwhile Brooke Bond Lipton India Limited (BBLIL) were made as per the existing law. Dadiseth said they have taken legal opinion from Justice Bhagwati on ther term `insider’, who has given them a clean chit. Saying that they have made voluntary disclosures to the SEBI, the HLL chairman said that the price of HLL’s shares did not go up after the deal. SEBI had shot off a letter to Hindustan Lever Limited (HLL) on Monday seeking an explanation.