SEBI has issued show cause notice (SCN) to 16 entities for insider-trading in Sabero Organics when the company was engaged in deal talks with Coromandel International in 2011.

In 2016, SEBI had ordered a re-investigation into the matter after disposing of an earlier interim order and SCN. Currently, the fresh notices were issued in the first week of November and involves five entities from West Bengal, four from Chennai and a few from Mumbai, sources told BusinessLine . In all, there were around 54 entities under the regulator’s watch in the matter.

According to the SEBI notice, over three crore shares of Sabero were traded during May 15-30, 2011, and the entities, which have been issued notices, indulged in trading on insider information.

Coromandel International belongs to the Chennai-headquartered $300-billion Murugappa group, and was acquiring Gujarat-based Sabero Organics in 2011. It was then that the deal information is said to have passed to a few who traded in the shares of Sabero Organics.

In 2015, SEBI had alleged that A Vellayan, Chairman, Murugappa Group, and others had passed on unpublished price-sensitive information regarding the deal to some individuals who traded in the shares of Sabero. The regulator had also directed entities to surrender ₹2.15 crore as unlawful gains, along with interest. These charges against Vellayan were dropped as SEBI came to a view that even others had the information and a re-investigation by SEBI’s former WTM S Raman was ordered in 2016.

SEBI did not reply to an e-mail query.

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