• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, May 13 The Securities and Appellate Tribunal Tuesday upheld a SEBI order finding drug-maker Wockhardt Ltd’s Chief Financial Officer Mr Rajiv Gandhi, his wife and sister guilty of insider trading.

A November 2006 order by an adjudicating officer at SEBI found the CFO and his family members guilty of insider trading, imposing a penalty of Rs 5 lakh on each of them.

Mr Gandhi is Company Secretary and CFO of the Mumbai-based company, responsible for the preparation of the company’s accounts including its balance sheet.

The order also names his wife Ms Amish Gandhi and sister Ms Sandhya Gandhi as being guilty of selling their shares before the company’s board meeting in January 1999. Similar transactions were also witnessed in relation to Wockhardt’s demerger of its research company, the SAT order said.

“In view of the aforesaid trades executed by Gandhi and the other two appellants, the Board was prima facie of the view that the trades had been executed on the basis of unpublished price sensitive information and, therefore the appellants had violated regulations 3 and 4 of the Securities and Exchange Board of India (Insider Trading) Regualtions, 1992…” the order said.

The three appellants did not offer an explanation or rebuttal to the above allegation and the presumption that they were insiders.

No explanation was offered on what prompted them to use the unpublished information known to them, the order said.

Wockhardt’s spokesperson told Business Line that the company was studying the judgment and its implications and will take appropriate measures after thorough review and investigation.

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line