Markets regulator Sebi on Friday disposed of proceedings against E-City Hi-Tech Projects LLP and an individual in a matter pertaining to alleged insider trading in the scrip of Zee Entertainment Enterprises Ltd.
E-City Hi-Tech Projects LLP is part of the Essel Group while Atul Goel is also one of the promoters of the group.
They were alleged to have violated Prohibition of Insider Trading (PIT) norms.
Sebi had initiated an investigation to ascertain whether certain persons or entities had traded in the scrip of Zee Entertainment while they were in possession of information regarding some steps taken by Essel Group of which Zee Entertainment is a part.
The entities had allegedly traded in the scrip of Zee Entertainment while in possession of unpublished price sensitive information (UPSI).
However, Sebi in an order said, "It can be held that the impugned trades were not executed on the basis of UPSI by the Noticees but on the basis of an oft-used trading strategy."
Noticees refer to E-City Hi-Tech Projects LLP and Atul Goel.
In light of the conclusions, Sebi further held that "in facts and circumstances of the extant matter, the allegation in the present form against the Noticees with respect to the violation of provisions of PIT Regulations and SEBI Act ... does not stand established," it added.
