SEBI's Settlement Order In Piramal Insider Trading Case: All You Need To Know About The Terms

SEBI conducted an investigation involving Piramal Enterprises focusing on potential misuse of unpublished price-sensitive information related to the company's financial results.

SEBI building in Mumbai (Photo: Vijay Sartape/NDTV Profit)

The Securities and Exchange Board of India on Thursday came up with a settlement order in the case of Piramal Enterprises Ltd unlawful gain case. 

The terms included the payment of over Rs 91 lakh by Khushru Burjor Jijina, as managing director of Piramal Capital Housing Finance Ltd and Rs 45.5 lakh by his wife, while Greatdeal Finconsult Advisors LLP has to pay an amount of over Rs 17 crore. Greatdeal will also take a voluntary debarment from the securities market for six months.

Additionally, over Rs 15 crore has to be paid jointly and severally as disgorgement and interest, and over Rs 9 crore has to be paid as simple interest of 12% per annum, on the unlawful gain from date of default till the date of filing settlement application.

SEBI conducted an investigation involving Piramal Enterprises spanning from April 1, 2018 to May 31, 2019, focusing on potential misuse of unpublished, price-sensitive information related to the company's financial results. 

The investigation revealed that Khushru Burjor Jijina, as managing director of Piramal Capital Housing Finance Ltd., possessed this information about Piramal Enterprises' financial performance for the quarter-ending June 2018. 

During this period, Jijina, also a designated partner in Greatdeal Finconsult Advisors LLP, obtained a loan from Piramal Welfare Trust and used it to purchase Piramal Enterprises shares before the relevant information was made public on July 30, 2018.

The investigation alleged that this trading activity led to unlawful gains amounting to over Rs 15 crore. Following the issuance of a Show Cause Notice to the involved parties, settlement proceedings were initiated. After several rounds of negotiations and revisions to settlement terms, the High Powered Advisory Committee and the Panel of Whole Time Members of SEBI approved a settlement agreement on May 21 this year.

Also Read: Linde India Faces SEBI Directive Over Related-Party Transactions

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WRITTEN BY
Charu Singh
Charu Singh, a correspondent at NDTV Profit, leverages her legal education ... more
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