Kishore Biyani barred from securities market for 1 year

New Delhi, Feb 3 : The Securities and Exchange Board of India (SEBI) on Wednesday barred Future Retail CEO Kishore Biyani, among others, from the securities market for a period of one year for insider trading in the scrip of Future Retail (FRL).

The other entities and individuals barred from the securities market are Future Corporate Resources Private Limited (FCRPL), Kishore Biyani’s brother Anil Biyani, Rajesh Pathak and Rajkumar Pande.

An investigation found that some of the entities traded in shares of Future Retail on the basis of unpublished price sensitive information (UPSI) violating SEBI norms during the period between March 10 and April 20, 2017.

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Further, the noticees have also been restrained from buying, selling or dealing in the securities of Future Retail Limited (FRL), directly or indirectly, in any manner whatsoever, for a period of two years.

SEBI in its order has also asked Future Corporate Resources, Kishore Biyani and Anil Biyani to jointly and severally disgorge an amount of over Rs 17.78 crore along with an interest at the rate of 12 per cent per annum from April 20, 2020 till the date of actual payment.

The investigation observed that Future Retail had made an announcement on April 20, 2017 during market hours on the exchange titled ‘Outcome of Board Meeting’ stating a Composite Scheme of Arrangement between Future Retail Limited and Bluerock eServices Private Limited and Praxis Home Retail Private Limited and their respective shareholders.

The investigation observed that FCRPL and FRCPL Employee Welfare Trust traded in the scrip of FRL during the period of UPSI.

SEBI said that the list containing the names of people who were privy to the UPSI, submitted by FRL, included Kishore Biyani, the CMD and Promoter of FRL who was also a Director on the Board of FCRPL, among others.

“I find that the material available on record does not indicate the amount of specific loss caused to investors or group of investors as a result of the default by the noticees or that default by the noticees is repetitive in nature. However, wrongful gains made are being directed to be disgorged by this order,” said the order by Ananta Barua, wholetime member of SEBI.

Disclaimer: This story is auto-generated from IANS service.

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