SEBI has passed a landmark order on insider trading on 4th January 2012 against Mr. Vasant Kaul, Independent Director or Ranbaxy Laboratories Ltd. levying a fine of Rs.50 lakhs on him and Rs.10 lakhs on his wife. Both order are available on the SEBI website V.N. Kaul and Bala Kaul
Few unique features about this order:
Insider trading was carried out in the wholly owned subsidiary of the company in which Mr. Kaul was an independent director and he was still considered an insider;
I am not aware if this is the first time this is happening in India, but SEBI has used telephonic conversations as evidence and has taken support from the recent Rajaratnam case where telephonic transscripts were extensively used.
It would be interesting to follow this story to see what happens in the courts because i am sure that appeals will be filed against this order in the Courts.
Few unique features about this order:
Insider trading was carried out in the wholly owned subsidiary of the company in which Mr. Kaul was an independent director and he was still considered an insider;
I am not aware if this is the first time this is happening in India, but SEBI has used telephonic conversations as evidence and has taken support from the recent Rajaratnam case where telephonic transscripts were extensively used.
It would be interesting to follow this story to see what happens in the courts because i am sure that appeals will be filed against this order in the Courts.
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