SEBI disposes of Proceedings under Insider Trading Regulations against Noticees due to lack of sufficient evidence [Read Order]

SEBI - Insider Trading Regulations - Noticees - Taxscan

The Securities and Exchange Board of India (SEBI) has disposed off proceedings under Insider Trading Regulations against entities of Sabero Organics Gujarat Limited.

On the basis of the examination by the SEBI of the circumstances and trading pattern in the scrip of Sabero, it was identified that certain entities had purchased shares of Saberoduring the Unpublished Price Sensitive Information (UPSI) Period and then sold after the UPSI period and in the process had made profits. It was also noticed from the analysis of trading done by such entities during the period April 01, 2009, to March 31, 2012, that these entities had started trading in the scrip of Saberoonly after May 16, 2011, i.e. the first day of UPSI period and had not traded in the scrip of Saberoprior to UPSI period.

Whole Time Member of SEBI, S.K. Mohanty disposing of the matter observed “I am of the view that the evidence and the factual support that have been brought into the Investigation Report and in the SCNs, are not sufficient enough to pass the muster of the principle of preponderance of probabilities, and the same are incapable of leading me to an irresistible conclusion that the Noticees, while trading in the scrip of the Company was actually in possession of or having access to the UPSI of the Company, more particularly, when the same factual details and evidence were found to be inadequate by the Competent Authority while directing for re-investigation into the matter vide 2016 Order. It is trite law to state that the desideratum of clarity represents one of the most essential ingredients of legality. Therefore, I am of the view that the materials on record are not successful in bringing home the charges made in the SCNs with clarity and conviction.”

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