The Securities and Exchange Board of India (Sebi) has barred Nishat Shailesh Gupte, a former official of Diageo Plc, from the capital markets for seven years for indulging in insider trading activity in United Spirits Ltd.
The regulator has also directed three persons related to Gupte — Poonam Haresh Jashnani, Haresh Parmanand Jashnani and Varun Haresh Jashnani — to disgorge unlawful gains totalling over Rs 1 crore made by them, along with interest, in the insider trading case.
According to a Sebi order, Gupte, who was the Global Business Development Manager (M&A) of Diageo, was in possession of unpublished price sensitive information (UPSI) relating to the open offer for acquisition of shares of United Spirits Ltd (USL) by Relay BV together with Diageo Plc as the person acting in concert (PAC). Gupte was part of the core team which represented Diageo in the transaction to consolidate shareholding of the acquirer in USL and was guiding the team since the beginning of the transaction lifecycle. Further, the regulator said Poonam, Haresh and Varun also indulged in insider trading activity in USL based on the information passed by Gupte.
Gupte is the son-in-law of Poonam and Haresh, and brother-in-law of Varun.