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Informist, Tuesday, Jun. 9, 2026

 

NEW DELHI – The Supreme Court has upheld the Securities Appellate Tribunal's 2022 order clearing Biocon Ltd.'s Managing Director Shreehas P. Tambe of insider trading charges, rejecting a petition by the Securities and Exchange Board of India. The insider trading charges relate to Tambe when he was the vice-president of Biocon. 

 

The market regulator had claimed that Tambe had traded in the shares of Biocon while in possession of unpublished price-sensitive information pertaining to the company's collaboration with Sandoz. The regulator said that Tambe had sold 17,440 shares of Biocon in 2017 and made delayed disclosure beyond the stipulated period of 48 hours, violating insider trading rules. 

 

"In the attending facts and circumstances of the case, we are not inclined to interfere with the impugned judgment/order (of the appellate tribunal), clarifying that the same shall not be treated as a binding precedent," said a bench of Justice Sanjay Karol and Justice N.K. Singh. The market regulator's appeal was disposed of, leaving the question of law open, the bench said.

 

The apex court upheld the appellate tribunal's ruling that had set aside the market regulator's order to restrain Tambe from accessing the securities market and prohibit him from being associated with any listed company for three months. The appellate tribunal had said that Tambe had sought pre-clearance from Biocon to sell the shares of the company since the trading window was not closed. "..we are of the opinion that the appellant is entitled to the benefit of proviso to Regulation 4(1) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015  Regulations," said the appellate tribunal.

 

The case has its genesis in SEBI observing a rise in the stock of Biocon pursuant to some public announcement made on Jan. 18, 2018, regarding global collaboration between the company and Sandoz. This public announcement caused fluctuations in the Biocon stock by 5.6%. SEBI conducted an investigation to ascertain as to whether persons had traded in the scrip of Biocon while they were in possession of unpublished price-sensitive information. 

 

On Tuesday, shares of Biocon Ltd. ended 1.7% higher at INR 416.35 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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