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Capital market regulator SEBI has impounded unlawful gains of over ₹2.15 crore made by four entities — A Vellayan, AR Murugappan, Gopalakrishnan C and V Karuppiah (HUF) based on prima facie evidence that they had traded in the scrip of Sabero Organics Gujarat based on unpublished price sensitive information that Coromandel International was about to acquire a stake in Sabero.
Observing that the price of Sabero rose to ₹127 on June 9, 2011, from ₹58 on May 16, 2011, on the BSE and to ₹126.45 on June 15, 2011, from ₹57.80 on May 13, 2011, on the NSE, SEBI investigated the matter further.
If the funds are found to be insufficient to meet the figure of unlawful gains, as directed above, then the securities lying in the demat account of these persons shall be frozen to the extent of the remaining value, SEBI said in its order on Thursday.
The direction comes into effect immediately and SEBI has to complete its investigation in three months. All the four have to reply to SEBI within 21 days.
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