Two insider trading cases involving Adani shares settled with Sebi

After deliberation by Sebi’s High-Powered Advisory Committee (HPAC), the settlement terms were accepted, including a voluntary debarment from the Indian securities market for six months. The settlement was finalized upon receipt of the stipulated amounts.

Sebi order said, “The applicant, on account of being the Managing Director and Chief Executive Officer of a subsidiary of IHC, was allegedly a “connected person” in terms of regulation 2(1)(d)(i) and an “insider” in terms of regulations 2(1)(g)(i) and 2(1)(g) (ii) of PIT Regulations by way of frequent communication with officials of AGEL. It is alleged that the applicant received UPSI from two insiders by way of email dated April 2, 2022 and April 4, 2022, respectively”.

Separately, Supreet Singh Luthra, a VAT consultant associated with Ajay Bhatia, settled his case by agreeing to pay Rs 40 lakh plus Rs 13.13 lakh in disgorgement of unlawful gains.

The case involved trading in AGEL, AEL, and ATL shares based on UPSI received during constant contact with Ajay Bhatia. On April 8, 2022, Luthra purchased shares worth Rs 1.32 crore, generating unlawful gains of Rs 13.13 lakh.

Sebi’s HPAC recommended the settlement terms, which were later approved by the Whole Time Members of the regulator’s board. Luthra also undertook a voluntary debarment from the Indian securities market for six months.

Under Sebi’s settlement regulations, parties can settle cases with regulator without admitting or denying the guilt by paying settlement fee, which is based on a formula.