Shares of Aurobindo Pharma declined 4 percent intraday on September 24 after SEBI imposed a penalty on the company’s promoter and other connected entities for violating insider trading norms.
Markets regulator SEBI on Monday imposed a total penalty of over Rs 22 crore on Aurobindo Pharma, its promoter PV Ramprasad Reddy, his wife P Suneela Rani and other connected entities for violating insider trading norms.
The regulator conducted an investigation into the trading in the scrip of the company during the period from July 2008 to March 2009 to ascertain the regulatory violation.
The probe found that the promoter entities traded in the scrip of APL based on unpublished price sensitive information or UPSI pertaining to the company’s Licensing and Supply Agreements with Pfizer Inc and made “unlawful gains”.
The promoter and other entities purchased shares while in possession of the UPSI pertaining to APL, and made unlawful gains from having purchased shares of APL at a lower price before the publication of the UPSI on March 3, 2009, and thereby violating insider trading rules.
SEBI slapped a fine of Rs 2 crore on Aurobindo Pharma, Rs 7.5 crore on Top Class Capital Markets, Rs 6 crore on Trident Chemphar, Rs 5 crore on Ramprasad Reddy; Rs 2 crore on Rani and Rs 10 lakh each on Kambam P Reddy and Veritaz Health Care.
At 1012 hrs, Aurobindo Pharma was quoting at Rs 609, down Rs 4.80, or 0.78 percent on the BSE.
news Source: moneycontrol