Arun Jain, promoter of Chennai-based Polaris Software Lab (now Polaris Software Consulting), has clarified that the ex parte interim order by SEBI on November 24 against him was a matter pertaining to a set of facts of 2008 pursuant to which an investigation was conducted.

SEBI concluded that the trades were made while he was in possession of unpublished price sensitive information.

₹2 cr paid under protest “The order by its very nature was not a conclusive finding. As I am keen to have this matter resolved at the earliest, I would be taking all steps as legally advised to defend myself against the serious harm to reputation caused by this order, including by contesting vigorously the contents and conclusions drawn by SEBI.

“The allegations are clearly denied and I am confident that upon appreciation of the robust defence that would be put up, they would be dropped,” Jain said in a statement issued to the BSE.

Meanwhile, the amount asked to be deposited by SEBI was deposited ‘under protest,’ Jain said.

In an earlier matter, SEBI’s order of October 2012 involving selling of 15,080 shares was quashed by SAT in December 2013 with SEBI unconditionally allowing the appeal. Further, in the last 13 years since March 2002, “I have not sold a single Polaris share,” he said.

SEBI on November 24 ordered impounding of alleged ‘unlawful gains' of over ₹2 crore, which includes interest, from Jain and former chief financial officer of Polaris Software R Srikanth after finding them guilty in an insider trading case.

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