Bliss GVS Pharma promoters under SEBI lens for insider-trading

PALAK SHAH Mumbai | Updated on March 02, 2020

SEBI is investigating entities linked to promoter group of Bliss GVS Pharma for alleged inside-trading in the share price. The regulator has also recorded statements of top management officials in the case, sources in the know told BusinessLine.

SEBI investigations pertain to trading in the shares of Bliss GVS Pharma by entities linked to promoter group involving Gautam Ashra family, SN Kamath and a top company official Vipul Thakkar, the sources said. Statement of Thakkar has been recorded by SEBI, they added.

Responding to an email query from BusinessLine, Thakkar, currently CFO of GVS Bliss, said, “No show-cause notice has been received from SEBI till date. SEBI is examining certain transactions, which it is entitled to examine in the interest of investors under securities laws to ensure no one violates the law. Bliss GVS or its officials are committed to fully cooperate and assist SEBI in whatever queries they or any authorities may have.

“Any insinuation or allegation of insider-trading or any other violation is incorrect and denied. Status of Kanji Pitamber Forex and Kanji Forex being part of promoter group or not are already available in public domain. At this stage, we do not wish to state anything else, while reserving our rights.”

Kenyan connection

The case pertains to trading in the share price of Bliss GVS Pharma during 2015 when a Kenya-based company linked to the Indian company received an order. SEBI has learnt that the company in Kenya was a subsidiary of Bliss GVS, which is listed in India and trading was allegedly done by promoters around the announcement of the receipt of a mega crore order.

Later, the Kenya government revealed that the insurance-sector linked orders involving their country’s Teachers Service Commission given to the Kenya firm were fake. The share price of Bliss GVS, which was trading at around ₹63 on December 1, 2014 rose to around ₹200 by July 1, 2015.

‘₹90-100 crore gains’

The sources say that SEBI has calculated gains worth in the range of ₹90-100 crore allegedly made by the entities linked to the promoter group. Two promoter group companies including Kabhi Forex and Kanji Pitambar that belong to promoter group are being probed for the alleged role in dealing in shares of GVS Bliss, the source said.

SEBI has found that a key official of GVS Bliss Pharma was also associated with the Kenya company. The regulator has also made a request to Kenya to share details of the firm in their country linked to the listed Indian company. The regulator is also looking in dealing in the share price of Bliss GVS Pharma during 2019.

Published on March 02, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like