Comments
A Vellayan has resumed charge as Chairman of the Murugappa Corporate Board.
Vellayan had ‘stepped aside’ in May following an insider trading charge by markets regulator Securities and Exchange Board of India. A statement from the Murugappa Group had then said he had chosen to step aside “in keeping with family values and tradition” till the issue was resolved.
Murugappa Group today announced Vellayan had resumed charge on the request of the Group Corporate Board.
The Board had made the request after “an assessment of the status of the ongoing proceedings against alleged insider trading and after considering expert legal advice of Senior Counsel on this matter,” it said
SEBI had linked Vellayan and two others who had traded in stocks of Sabero Organics Gujarat Ltd, which was acquired by Coromandel International of the Murugappa Group in May 2011.
This followed an investigation into the pattern of trading in Sabero stocks in May and June 2011 and the bank statements of the three persons. The Regulator impounded ₹2.05 crore from the accounts of Vellayan and the two others and gave them 21 days to file a reply.
However, Vellayan had strongly denied the accusation and said it was “based merely on suspicion and is a far fetched tenuous conjecture.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.