SEBI asked the Aurobindo and its promoters to pay the penalty within 45 days of the receipt of the order.
Capital market regulator Securities Exchange Board of India (SEBI) on September 23 imposed penalties of Rs 22.7 crore on Aurobindo Pharma and its promoters for violation of provisions of insider trading in relation to a licensing deal it had entered with Pfizer in 2009.
SEBI imposed Rs 5 crore penalty on PV Ramaprasad Reddy, Rs 2 crore on his wife P Suneela Rani, Rs 10 lakh on Kambam P Reddy, Rs 6 crore on Trident Chemphar, Rs 10 lakh on Veritaz Health Care, Rs 7.5 crore on Top Class Capital Markets under Section 15G of SEBI Act, and Rs 2 crore on Aurobindo Pharma under Section 23E of Securities Contracts (Regulation) Act and Section 15HB of SEBI Act, according to SEBI’s adjudicating order.
Moneycontrol saw a copy of the 78-page order.
SEBI asked Aurobindo and its promoters to pay the penalty within 45 days of the receipt of the order.
SEBI issued a show-cause notice to Aurobindo Pharma in June 2008 following a sharp spike in the share price.
The agency conducted investigation into the trading in the scrip of Aurobindo Pharma during the period from July 22, 2008 to March 20, 2009, said Aurobindo Pharma failed to disclose immediately and continuously to the stock exchange on price-sensitive information (PSI) pertaining to the licensing and supply agreements as soon as they were entered into with Pfizer.
Aurobindo entered licensing agreements with Pfizer to supply bulk drugs and finished formulations for the latter, between July 22, 2008, and December 29, 2008. However, the agreement became public through the press release dated March 3, 2009.SEBI alleged that the promoters of Aurobindo and their related companies have bought shares to gain from the price-sensitive information, which they held.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.