Indiabulls Ventures matter: Sebi allows 2 individuals to sell shares within 3 months

New Delhi, Mar 4 () Markets regulator Sebi on Wednesday allowed Indiabulls Ventures former non-executive director and her husband to sell the shares by availing the services of intermediaries within three months.

The sale of shares of Indiabulls Real Estate and Indiabulls Ventures Ltd (IVL) shall be in accordance with market norms, Sebi said while laying down various conditions.

In February, Sebi noted that Pia Johnson, former non-executive director of IVL, and her husband Mehul Johnson violated the Prohibition of Insider Trading norms by trading in possession of unpublished price-sensitive information (UPSI).

During the UPSI period, Pia traded 5.5 lakh shares, while Mehul traded over 3.38 lakh shares, making collectively alleged gains of Rs 69.09 lakh. As the gains were made in 2017, an annual 12 per cent interest was levied on the gains that makes the total amount Rs 87.21 lakh, Sebi had noted.

In May 2019, Sebi, besides barring the individuals from accessing the markets till further orders, also ordered to impound Rs 87.21 lakh "jointly and severally" from Pia and Mehul and directed banks and depositories that no debits shall be made without permission of the regulator.

The amount of over Rs 87.2 lakh, which was impounded, stands disgorged and shall be remitted to the Investor Protection and Education Fund.

Aggrieved by Sebi's order, the individuals filed an appeal and a miscellaneous application before the Securities Appellate Tribunal (SAT) praying stay on Sebi's directions.

The Tribunal said, "The impounding of Rs 87,21,918.55 by way of disgorgement shall be kept by the respondent in an escrow account and would be subject to the result of the appeal.

"In so far as the restraint order is concerned, we permit the appellant to sell its stocks and shares as and when required during the pendency of the appeal by making an appropriate application before Sebi."

Accordingly, Pia Johnson and Mehul Johnson made representation before Sebi requesting permission to sell the shares and also provided details of intermediaries whose services are sought to be availed for the sale of shares. SRS HRS