The Future Group stocks remained under pressure after market regulator Securities and Exchange Board of India (SEBI) barred the Future Group's CEO Kishore Biyani from accessing the securities market for a year.
The Securities and Exchange Board of India (SEBI) said Biyani and brother Anil, who was also banned from the securities market, traded in shares of Future Retail Ltd (FRL) through another unit using unpublished price sensitive information.
This happened between March 10, 2017, and April 20, 2017, when certain businesses of FRL were recast, causing its share price to rise, it said.
Also Read - SEBI bans Future CEO Kishore Biyani from securities market in insider trading case
SEBI found the Biyanis opened a trading account for a business named Future Corporate Resources Private Limited (FCRPL), which traded in FRL’s shares before the decision to demerge certain businesses was made public.
In a statement, Future said it will challenge the order. “The SEBI Order is untenable since it treats a well-anticipated and publicly well-known impending reorganisation of the home furnishing businesses that the Future Group effected in 2017 to be unpublished information," it said, adding that the order will not affect its deal with Reliance Industries Ltd.
SEBI also barred Biyani, a few related entities and three others from trading in Future Retail shares for two years and imposed a penalty of Rs 3.7 crore on Biyani, four others, and related entities.
At 09:21 hrs Future Lifestyle Fashions was quoting at Rs 83.95, down Rs 4.40, or 4.98 percent and Future Retail was quoting at Rs 73.75, down Rs 3.85, or 4.96 percent.Future Supply Chain Solutions
was quoting at Rs 96.10, down Rs 5.05, or 4.99 percent, Future Consumer
was quoting at Rs 7.85, down Rs 0.30, or 3.68 percent and Future Enterprises
was quoting at Rs 11.05, down Rs 0.55, or 4.74 percent on the BSE.