September 16, 2021 3:44:58 am
The Securities and Exchange Board of India (Sebi) has barred eight persons, including Poonawalla Fincorp Ltd (formerly Magma Fincorp Ltd) Managing Director Abhay Bhutada, from the markets and also impounded Rs 13.58 crore from the bank accounts of the eight persons to the extent of their respective liability in an insider trading case.
The eight persons 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 among the eight entities during the relevant period and the said phones calls were followed by transfer of funds … persons enjoying connection through phone calls …. traded in the scrip of Magma in advance of the event…,” Sebi said.
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