Indian Continent Investment, promoter of Bharti Airtel, has settled an alleged insider trading case with markets regulator SEBI. The company has paid ₹2.17 lakh towards settlement charges to the Securities and Exchange Board of India. The case pertains to insider trading charges of 2007 and 2010.

In the consent settlement process, entities facing proceedings from SEBI pay settlement charges, as also legal and administrative expenses, without admission or denial of guilt. However, SEBI can still reopen the case if some new facts crop up later.

Indian Continent Investment had acquired 26.58 crore shares, constituting 7 per cent stake in the company between July 2007 and December 2010. Following the acquisition, Indian Continent Investment’s shareholding in Bharti Aitel crossed 5 per cent on April 29, 2008, requiring it to make necessary disclosures under PIT (Prohibition of Insider Trading) Regulations. However, the promoter company failed to make such disclosure, prompting SEBI to initiate a probe. SEBI had initiated adjudication proceedings against Indian Continent Investment over violation of the regulations. Pending the adjudication proceedings, the company had offered to settle the matter on payment of charges.

SEBI’s High Powered Advisory Committee recommended the case for settlement on payment of the amount. This was also approved by SEBI’s panel of whole-time members, following which the company remitted the amount. Accordingly, SEBI has disposed of the adjudication proceedings initiated against Indian Continent Investment, which continued to hold 6.65 per cent stake in Bharti Airtel till December 2016.

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