Mumbai: Markets regulator Sebi is likely to reopen an insider trading case against Sun Pharmaceutical Industries as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas, sources said. The development comes after a whistle blower reportedly approached Sebi with a document alleging various irregularities by the company, its promoter Dilip Shanghvi and others, they added.
Shares of Sun Pharma dived 7.5 per cent on the bourses. The stock ended down at Rs 455.30 apiece on the BSE. In August 2017, Sun Pharmaceutical, its managing director Dilip Shanghvi and nine other entities settled an insider trading probe on payment of Rs 18 lakh towards settlement charges. Sources said Sebi is likely to reopen the case.
Shanghvi denies
Dilip Shanghvi issued a point-by-point denial of allegations made against the company on corporate misgovernance. “We exercise high-level of corporate governance at the company, which is expected from a global company of our size. We are constantly evaluating how to further strengthen our corporate governance to meet investors’ expectations,” said Shanghvi in an investor conference call.
Shanghvi said that the issues highlighted in the brokerage note are not related to Sun Pharma, some issues are factually incorrect and some issues are dating back at least a decade. Shanghvi denied receiving any communication from the capital market regulator pertaining to the whistleblower’s complaint.
The Sebi has powers to reopen cases of settlement related to insider trading on various grounds. According to the sources, alleged irregularities by the company’s promoters and others in raising funds through Foreign Currency Convertible Bonds (FCCBs) are also likely to be investigated by the watchdog.
Queries sent to Sun Pharma in this regard remained unanswered. About the whistleblower complaint, a company spokesperson said, “We have not been contacted by Sebi in this regard.” On Thursday, stock exchanges had sought clarification from Sun Pharma following a brokerage report that allegedly raised concerns about certain practices at the company. In response, the company said the points raised pertain to historic events, some of which are dated as far back as 10-15 years. “Certain points raised in the said note are incomplete and have been presented in a negative manner.
