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An alleged insider-trading case against the former independent director of SpiceJet KR Sasiprabhu has been disposed of by market regulator SEBI for lack of evidence. SEBI has said that charges could not be established against him.
Sasiprabhu is alleged to have traded in SpiceJet’s shares while in possession of unpublished price-sensitive information (UPSI) with regard to the company’s quarterly financial results. Sasiprabhu, who was appointed as an independent director of SpiceJet on December 1, 2015, had resigned from the position in May 2018, SEBI noted.
The SEBI probe found that the UPSI regarding the results for the quarter ended December 2015 came into existence from January 6, 2016, whereas Sasiprabhu bought 2,000 shares of SpiceJet on January 7, 2016.
Further, the probe showed that Sasiprabhu attended the company’s board meeting for the first time on January 22, 2016, the date on which the board approved the financial results.
Transaction date
“He came to know of the proposed board meeting and details of financial results on January 15, 2016, and January 21, 2016, respectively and that he traded in the scrip much before he came to know of the proposed board meeting and financial results,” SEBI said.
“I conclude that the charge against the noticee (Sasiprabhu) that he had traded in the scrip of SpiceJet while in possession of UPSI, does not stand established,” SEBI Adjudicating Officer BJ Dilip said in an order.
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