Sebi settles insider trading case in Sabero Organics matter for Rs 59 lakh

New Delhi, Jan 8 () Markets regulator Sebi has settled an alleged insider trading case with an individual in Sabero Organics Ltd matter on payment of over Rs 59 lakh as settlement charges and disgorgement of illegal gains.

The regulator during a probe between May-June 2011, noted that Coromandel, after a meeting with the representatives of Sabero Organics, informed the exchanges about the acquisition of the latter by it.

The information related to the acquisition of Sabero Organics by Coromandel was deemed to be a price sensitive information and the period between May 15, 2011 to May 30, 2011 was unpublished price-sensitive information (UPSI) period, Sebi said.

The individual -- R Sridhar -- by trading in the scrip of Sabero during the UPSI period made a profit of Rs 12,83,604.

Thus, Sridhar was alleged to have violated Prohibition of Insider Trading Regulations.

However, pending the proceedings, Sridhar filed a settlement application with Sebi and proposed to pay Rs 33.46 lakh as settlement amount along with Rs 12.83 lakh of illegal gains and Rs 12.85 lakh of interest amount.

The total amount after the approval from the high powered advisory committee of Sebi was remitted by Sridhar in December 2019.

Accordingly, the probe in the matter has been disposed of by Sebi after the applicant paid the settlement amount.

However, the regulator has said proceeding in the matter may be restored if representations made by the applicant are subsequently found to be untrue. SRS BAL