Polaris shares plunge after Sebi bars CMD from securities
Posted: Tue Oct 09, 2012 11:02 pm
Shares in Polaris plunged in early trade Wednesday on the back of a ruling by market regulator Securities and Exchange Board of India (Sebi), which barred the mid-cap IT firm's chairman and managing director Arun Jain from securities market for a period of two years for alleged insider trading in the company's shares.
At 09.40 a.m., the stock traded 8 per cent lower at Rs. 122.90 on the BSE. In contrast, the BSE IT index traded 0.3 per cent lower.
Sebi said it found Mr Jain guilty of norms related to insider trading on the basis of 'unpublished price sensitive information' relating to a proposed acquisition by the firm. The alleged insider trade dates back to August- September 2000.
Sebi said it found that Polaris Software Lab had called off the proposed acquisition of Data Inc, after due diligence, in the second week of September, 2000 but had informed the concerned stock exchanges on September 30, 2000. Mr Jain dealt in 15,080 shares of the company on behalf of Polaris Holding Private Ltd (PHPL) on the basis of 'unpublished price sensitive information' held by him and had made unfair gains to the tune of Rs. 27.26 lakh, the market regulator added.
During the relevant time, PHPL was one of the promoter entities of Polaris Software Labs and Jain was one of the directors of PHPL.
In a written statement, Polaris said it was reviewing the Sebi order in detail and may file an appeal before the Securities Appellate Tribunal (SAT).
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At 09.40 a.m., the stock traded 8 per cent lower at Rs. 122.90 on the BSE. In contrast, the BSE IT index traded 0.3 per cent lower.
Sebi said it found Mr Jain guilty of norms related to insider trading on the basis of 'unpublished price sensitive information' relating to a proposed acquisition by the firm. The alleged insider trade dates back to August- September 2000.
Sebi said it found that Polaris Software Lab had called off the proposed acquisition of Data Inc, after due diligence, in the second week of September, 2000 but had informed the concerned stock exchanges on September 30, 2000. Mr Jain dealt in 15,080 shares of the company on behalf of Polaris Holding Private Ltd (PHPL) on the basis of 'unpublished price sensitive information' held by him and had made unfair gains to the tune of Rs. 27.26 lakh, the market regulator added.
During the relevant time, PHPL was one of the promoter entities of Polaris Software Labs and Jain was one of the directors of PHPL.
In a written statement, Polaris said it was reviewing the Sebi order in detail and may file an appeal before the Securities Appellate Tribunal (SAT).
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