Indiabulls Ventures CEO, 4 others pay ₹5 cr to settle insider trading case

According to a SEBI order passed on Wednesday, the entities had filed separate settlement applications in terms of the SEBI (Settlement Proceedings) Regulations, 2018, seeking to dispose of pending enforcement proceedings without accepting or denying the findings of fact and the findings of law. was proposed to be settled. settlement order.

Among the applicants were Divyesh B Shah, who was the chief executive officer and whole-time director, his relatives Dravinaben L Desai, Vikram L Desai, and Sharvari V Desai and Vikram L Desai HUF.

The SEBI order said that the High Powered Advisory Committee has considered the settlement terms proposed by the applicants and recommended disposal of the matter on payment of their respective settlement fees.

Divyesh was accused of possessing unpublished Price Sensitive Information (UPSI) relating to the financial results of Indiabulls Ventures.

The firm on April 23, 2018 informed NSE and BSE about its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2018. It had also declared interim dividend.

The duration of UPSI was from April 2, 2018 to April 23, 2018. Divyesh allegedly told the UPSI to his relatives, who had traded in the shares of Indiabulls Ventures during the UPSI period.

Vikram also traded on behalf of Dravinaben, Sharvari and Vikram Desai HUF. By trading in the company’s shares during the UPSI period, Dravinaben was alleged to have made illegal profits. ₹1.22 crores.

Pending the proceedings, they filed separate settlement applications with SEBI, proposing to settle the matter without admitting or denying the offence.

Divyesh Shah has paid ₹74.58 lakh as settlement amount while Vikram L Desai, Sharvari V Desai and Vikram L Desai have paid by HUF. ₹22.31 lakh each. In addition, Dravinaben L Desai has paid ₹3.56 crores. This includes payment of settlement charges, wrongful profits along with interest.