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Informist, Thursday, Jul 25, 2024

 

MUMBAI – The Managing Director of Piramal Capital and Housing Finance, and two other associated entities reached a settlement with the Securities and Exchange Board of India over a probe related to alleged breach of insider trading norms in trading shares of parent company Piramal Enterprises Ltd. A settlement order issued by SEBI today stated that the three entities have paid a settlement amount of 188.02 mln rupees, and an illegal gains disgorgement amount of 153.30 mln rupees, and an interest of 94.19 mln rupees.

 

The three entities were Khushru Jijina, managing director of Piramal Capital and Housing Finance, his wife Benaifer Jijina, and Greatdeal Finconsult Advisors where Khushru Jijina was a partner and his wife managed the operations.

 

While the disgorgement and interest amounts were paid "jointly and severally" by the three entities according to the SEBI order, the settlement amounts were paid separately. Greatdeal Finconsult Advisors paid a settlement amount of 174.37 mln rupees, Khushru Jijina paid 9.1 mln rupees, and his wife paid 4.55 mln rupees.

 

The three entities also agreed to a voluntary debarment of six months from the securities market.

 

SEBI said in the settlement order that it conducted an investigation from April 2018 to May 2019 to ascertain whether certain entities traded shares of Piramal Enterprises while in possession of unpublished price-sensitive information related to its financial results. Thereafter, the market regulator issued a show-cause notice to the Jijina couple and Greatdeal Finconsult alleging that Khushru Jijina in his capacity as managing director of the subsidiary company was in possession of the information on financials of Piramal Enterprises for the quarter ended June 2018.

 

According to SEBI, Jijina availed a loan of 2.12 bln rupees from Piramal Welfare Trust that was disbursed to Greatdeal Finconsult Advisors, which then acquired 850,000 shares of Piramal Enterprises for 2.11 bln rupees before publication of the the company's financial performance. The firm made unlawful gains of 153.30 mln rupees and breached the insider trading norms, SEBI said.

 

Today, shares of Piramal Enterprises closed 0.72% higher at 938.70 rupees on the National Stock Exchange.  End

 

Reported by Rajesh Gajra

Edited by Deepshikha Bhardwaj

 

 

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