MUMBAI, Aug 6: Has Hindustan Lever Ltd committed the offense of insider trading? A majority of stock market experts feel that the company has not indulged in insider trading as made out by the SEBI.When contcated by The Indian Express, a cross-section of brokers from the Bombay Stock Exchange brokers expressed the opinion that the company has not gained anything by buying eight lakh shares from the Unit Trust of India (UTI) a month before the merger. ``The fact that the said deal has not resulted in volatility in the price movement of HLL shares shows that the company was not buying shares with the intention of insider trading,'' said a broker.Many of the brokers preferred anonymity fearing retaliation from the regulatory body. ``After the CRB scam, SEBI wanted to show that it is vigilant enough and it wanted to spread the message that it can be tough,'' said a dealer. ``Morever, SEBI wanted to set an example for any future erring promoters,'' he added.``Even if Hindustan Lever would have bought those shares from the Unit Trust of India few months before the merger, the same accusation could be made as merger rumours were in the air from more than a year,'' said H Sheth, a member of BSE.``These kind of negotiable deals are common in the market and the buyer is paying more than the market rate, aiming to acquire a certain quantity of shares. The impact of a straight purchase from the market would have resulted in massive price volatility,'' said S Dalal. ``As none of the company's directors or the company itself had gained, one can easily say that the intentions of the management were not to make money or avail of any undue advantage,'' he added.As the SEBI's `letter of findings' has been not made public by either SEBI or HLL, brokers say that they would require more details to make any indepth comment on the issue.``The fact that the management has made all the details about the merger, including the said transaction public shows that the company was confident that it has not committed any mistake,'' says a NSE broker. There was, however, differences of opinion on whether a company can be called an insider by itself or not.HLL to back Datta MUMBAI: Hindustan Lever director M K Sharma today clarified that the company would back former HLL chairman S M Datta to the hilt if there is any legal battle.There was speculation among quarters that Datta will have to fight his own court case as a separate notice has been sent to him. ``I think it would be morally and legally incorrect for HLL to leave Datta in the lurch. Any suggestion that we will not help Datta at the time of crisis would be incorrect,'' he said.
