Aurobindo Pharma, promoters pay ₹22 cr, settle case with SEBI

PTI New Delhi | Updated on October 26, 2020

Aurobindo Pharma, its promoter PV Ramprasad Reddy, his wife P Suneela Rani, and three other entities have settled an alleged insider trading case with markets regulator SEBI after paying over ₹22 crore towards settlement charges.

The three other entities that have settled the matter with the regulator are Kambam P Reddy, Trident Chemphar and Veritaz Health Care.

“The pending enforcement proceedings for the alleged defaults ... are settled,” SEBI said in a settlement order dated May 6.

It further said it would not initiate enforcement action against the entities for the defaults.

The order comes after these entities approached SEBI proposing to settle the case “without admitting or denying the findings of fact and conclusions of law” through a settlement order. The entities are alleged to have traded in the scrip of APL on the basis of unpublished price-sensitive information (UPSI) pertaining to the company’s licensing and supply agreements with Pfizer Inc.

SEBI had conducted an investigation into the trading of the scrip of Aurbindo Pharma (APL) during the period from July 2008 to March 2009 and found that Pfizer and APL had issued press releases on March 2, 2009, and March 3, 2009, respectively, regarding certain licensing and supply agreements entered into between them on July 22, 2008, November 30, 2008 and December 29, 2008.

The press releases were followed by an increase in price of the scrip of APL. APL was alleged to have failed to disclose the price-sensitive information regarding the licensing and supply agreements to the stock exchanges in violation of listing norms.

Published on May 14, 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