Stock Market: Insider trading: Securities Appellate Tribunal scraps Sebi’s order against Biyani
NEW DELHI: The Securities Appellate Tribunal (SAT) on Wednesday quashed markets regulator Sebi’s order banning Future Retail chairperson Kishore Biyani and some other promoters from the securities market for one year in an insider trading case.
Dismissing the Sebi’s order, the appellate tribunal said that the entities did not trade in the shares of Future Retail on the basis of unpublished price sensitive information relating to demerger as such information was already in public domain through multiple media reports.
“We are satisfied that the information relating to de-merger was already in the public domain and, therefore, trading done by the appellants in the shares after the publication of the interviews and news reports cannot be considered as trading while in possession of unpublished price sensitive information. Thus, the charge in the show cause notice fails and the findings given by the WTM (whole ime member) cannot be sustained. The impugned order is quashed,” a bench comprising presiding officer Tarun Agarwala and technical member Meera Swarup said.
Further, two authorities of Sebi – WTM as well as the adjudicating officer – accepted that if the transaction is in the public domain through newspaper reports/ interviews then trading on the basis of such information cannot be treated as unpublished price sensitive information, the tribunal noted.
The ruling came after the entities challenged an order passed by the Sebi in February 2021 that had barred Biyani and certain other promoters of Future Retail from the securities market for a year for indulging in insider trading in the shares of the company. In addition, the regulator had imposed a fine of Rs 1 crore each on Biyani, Anil Biyani and Future Corporate Resources. agencies
Dismissing the Sebi’s order, the appellate tribunal said that the entities did not trade in the shares of Future Retail on the basis of unpublished price sensitive information relating to demerger as such information was already in public domain through multiple media reports.
“We are satisfied that the information relating to de-merger was already in the public domain and, therefore, trading done by the appellants in the shares after the publication of the interviews and news reports cannot be considered as trading while in possession of unpublished price sensitive information. Thus, the charge in the show cause notice fails and the findings given by the WTM (whole ime member) cannot be sustained. The impugned order is quashed,” a bench comprising presiding officer Tarun Agarwala and technical member Meera Swarup said.
Further, two authorities of Sebi – WTM as well as the adjudicating officer – accepted that if the transaction is in the public domain through newspaper reports/ interviews then trading on the basis of such information cannot be treated as unpublished price sensitive information, the tribunal noted.
The ruling came after the entities challenged an order passed by the Sebi in February 2021 that had barred Biyani and certain other promoters of Future Retail from the securities market for a year for indulging in insider trading in the shares of the company. In addition, the regulator had imposed a fine of Rs 1 crore each on Biyani, Anil Biyani and Future Corporate Resources. agencies
