Biocon chief Kiran Mazumdar Shaw hits out at SEBI, says 'it needs to act rationally in insider trading judgements'

Biocon chief Kiran Mazumdar-Shaw on Friday asked Sebi to act rationally while dealing with insider trading judgements after the markets regulator barred one of its senior executives and Allegro Capital from the securities market for one year.

"SEBI bars Allegro Capital, its CEO over insider trading in Biocon shares - Crazy logic. What does MSMF have to do with Biocon? The officer concerned needs to explain her convoluted hypothesis. SEBI needs to act rationally in insider trading judgements," Mazumdar-Shaw tweeted.

Mazumdar-Shaw's tweet came after Sebi barred Allegro Capital and one of its senior executives from the securities market for one year in a case related to alleged insider trading activities in the shares of Biocon.

Besides, the market watchdog has directed them to disgorge wrongful gains along with interest. The amount would be more than Rs 24 lakh.

Allegro Capital and its director as well as major shareholder Kunal Ashok Kashyap have been fined Rs 10 lakh each, according to an order by Sebi dated July 8.

They also have to jointly and severally disgorge Rs 24,68,751 along with an interest of 12 per cent per annum from January 19, 2018, till the date of actual payment.

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Free Press Journal