MUMBAI: Capital market regulator Sebi plans to move the Supreme Court, challenging a recent order passed by the Securities Appellate Tribunal exonerating Jaiprakash AssociatesBSE -0.70 % Ltd's executive chairman Manoj Gaur and his family from insider trading charges, said two persons familiar with the development.
Last week, the quasi-judicial body struck down the orders passed by Sebi against Manoj Gaur, his wife Urvashi Gaur and brother Sameer Gaur after it observed that the regulator was unable to bring any direct or circumstantial evidence on record to show that unpublished price sensitive information (UPSI) was passed between the Gaur family members and trading was done based on it.
The tribunal also observed that Manoj Gaur's wife and brother traded in shares which were less in numbers compared to their holding in the company.
"If Mr. Manoj Gaur had passed on UPSI to Mrs. Urvashi Gaur and she traded on the basis of that UPSI she would not have traded in 1000 shares only," the SAT order said. As on March 23, 2012, Urvashi Gaur was holding 59,045 shares of the company.
"We cannot lose sight of the fact that the company is a widely held listed company with a paid up capital divided into 212,64,33,182 equity shares out of which promoter group holds 44.44 per cent. It is a large infrastructure company engaged in highways,cement, power and education sector and the executive chairman of such company would not like to risk the reputation of himself and the company for 1000 shares," SAT said.
The tribunal however upheld the charge of insider trading against two other company officials.
In January this year, the regulator had found Manoj Gaur,his wife Urvashi Gaur, brother Sameer Gaur, S D Nailwal, wholetime director of the company, and Harish K Vaid, senior president corporate affairs and company secretary guilty of insider trading and had imposed a total fine of Rs 70 lakh on them.
(Source: economictimes.indiatimes.com)
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