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Poonawalla Fincorp shares tank 5% as Sebi bars MD, 7 others in ‘insider trading case’

Poonawalla Fincorp share price: The scrip was locked at Rs 172.15 on the BSE and at Rs 171.90 on the National Stock Exchange (NSE), both down by 5 per cent each.

By: Express Web Desk | New Delhi |
Updated: September 16, 2021 12:43:46 pm
Poonawalla Fincorp, Poonawalla Fincorp news, Poonawalla Fincorp SebiThe Poonawallas of Serum Institute group acquired Magna Fincorp and renamed the company. (Image: Poonawalla Fincorp)

Shares of Poonawalla Fincorp were locked in the lower circuit of 5 per cent in the morning deals on Thursday a day after market regulator Sebi barred eight persons, including the company’s Managing Director Abhay Bhutada, from the markets and also impounded Rs 13.58 crore from their bank accounts to the extent of their respective liability in an insider trading case.

The scrip was locked at Rs 172.15 on the BSE and at Rs 171.90 on the National Stock Exchange (NSE), both down by 5 per cent each.

Over 4 lakh shares were traded on NSE so far in trade while around 72,000 shares exchanged hands on the BSE.

The eight persons that were barred by Sebi are: Abhay Bhutada, Saumil Shah, Surabhi Kishore Shah, Amit Agrawal, Murlidhar Bagranglal Agrawal, Rakesh Rajendra Bhojgadhiya, Rakesh Rajendra Bhojgadhiya and Abhijit Pawar.

According to a Sebi order, there were insider trading alerts in the scrip of Magma Fincorp for the month of February 2021, which was around the same time when the corporate announcement was made regarding acquisition of controlling stake in the company. The Poonawallas of Serum Institute group acquired Magna Fincorp and renamed the company.

“It is noticed that there were phone calls amongst the Entities during the relevant period and the said phones calls were followed by transfer of funds. Further, it is also noticed that persons enjoying connection through phone calls, fund transfers, etc. have traded in the scrip of Magma in advance of the afore-mentioned event i.e. disclosure of the corporate announcement,” the Sebi order said.

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