The Securities and Exchange Board of India (SEBI) has penalized Future Corporate Resources Pvt Ltd, Kishore Biyani and Anil Biyani, founder and co-founder of Future group respectively, and five others for insider trading.
The SEBI had conducted an investigation in the scrip of Future Retail Limited (FRL) to ascertain whether certain persons or entities had traded in the scrip during the period March 10, 2017 to April 20, 2017 on the basis of unpublished price sensitive information (UPSI), in contravention of the provisions of the SEBI Act, 1992 read with the SEBI (Prohibition of Insider Trading ) Regulations, 2015.
The SEBI investigation found that the Biyanis opened a trading account for an entity named Future Corporate Resources Private Limited, which traded in Future Retail’s shares before the demerger decision was made public.
The SEBI said the two brothers traded in shares of Future Retail through a group company on the basis of unpublished price sensitive information before a demerger of certain businesses of Future Retail that pushed its share price higher.
The SEBI order said Biyanis and Future Corporate Resources “disputed that they have indulged in insider trading” but added that they did not make “any specific submissions regarding wrongful gains made by them”.
SEBI also barred Biyani from trading in Future Retail shares for two years.
Future Corporate Resources and the two Biyani brothers will each need to pay a penalty of 10 million rupees ($137,099) within 45 days, SEBI said.
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