Polaris promoter Arun Jain and former Chief Financial Officer R Srikanth have been penalised by markets regulator Sebi for alleged insider trading in the shares of the Chennai-based IT services firm during 2008.
Mr Jain was slapped with a fine of Rs 1.84 crore, while Mr Srikanth was asked to pay Rs 19.69 lakh for allegedly making illegitimate gains through trading in shares of the company while in the possession of unpublished price sensitive information. (Read)
Mr Jain said the amount asked to be deposited by Sebi has been deposited "under protest".
"The interim order by its very nature is not a conclusive finding... 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," Mr Jain said in a statement to the Bombay Stock Exchange.
He reminded that in December 2013, the Securities Appellate Tribunal had set aside a Sebi order that had barred Mr Jain from the securities market for two years on charges of insider trading.
Last year, Polaris Financial Technology (Polaris FT) had carved out its products business into Intellect Design Arena. Polaris FT later rebranded itself as Polaris Consulting and Services.
The Sebi order comes as a setback for Mr Jain, who had earlier this month, sold a majority stake in Polaris Consulting and Services to US-based Virtusa for about Rs 1,170 crore. (Read)
Mr Jain is the chairman and managing director of Intellect Design Arena. Shares in the company closed 5.16 per cent lower at Rs 268.55. He continues to be the chairman of Polaris, the company he founded in 1993 with just Rs 10,000.
Polaris shares closed 1.6 per cent higher as against a 0.75 per cent rise in the broader Nifty.
(With inputs from agencies)
Polaris promoter Arun Jain and former Chief Financial Officer R Srikanth have been penalised by markets regulator Sebi for alleged insider trading in the shares of the Chennai-based IT services firm during 2008.
Mr Jain was slapped with a fine of Rs 1.84 crore, while Mr Srikanth was asked to pay Rs 19.69 lakh for allegedly making illegitimate gains through trading in shares of the company while in the possession of unpublished price sensitive information. (Read)
Mr Jain said the amount asked to be deposited by Sebi has been deposited "under protest".
"The interim order by its very nature is not a conclusive finding... 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," Mr Jain said in a statement to the Bombay Stock Exchange.
He reminded that in December 2013, the Securities Appellate Tribunal had set aside a Sebi order that had barred Mr Jain from the securities market for two years on charges of insider trading.
Last year, Polaris Financial Technology (Polaris FT) had carved out its products business into Intellect Design Arena. Polaris FT later rebranded itself as Polaris Consulting and Services.
The Sebi order comes as a setback for Mr Jain, who had earlier this month, sold a majority stake in Polaris Consulting and Services to US-based Virtusa for about Rs 1,170 crore. (Read)
Mr Jain is the chairman and managing director of Intellect Design Arena. Shares in the company closed 5.16 per cent lower at Rs 268.55. He continues to be the chairman of Polaris, the company he founded in 1993 with just Rs 10,000.
Polaris shares closed 1.6 per cent higher as against a 0.75 per cent rise in the broader Nifty.
(With inputs from agencies)
Polaris promoter Arun Jain and former Chief Financial Officer R Srikanth have been penalised by markets regulator Sebi for alleged insider trading in the shares of the Chennai-based IT services firm during 2008.
Mr Jain was slapped with a fine of Rs 1.84 crore, while Mr Srikanth was asked to pay Rs 19.69 lakh for allegedly making illegitimate gains through trading in shares of the company while in the possession of unpublished price sensitive information. (Read)
Mr Jain said the amount asked to be deposited by Sebi has been deposited "under protest".
"The interim order by its very nature is not a conclusive finding... 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," Mr Jain said in a statement to the Bombay Stock Exchange.
He reminded that in December 2013, the Securities Appellate Tribunal had set aside a Sebi order that had barred Mr Jain from the securities market for two years on charges of insider trading.
Last year, Polaris Financial Technology (Polaris FT) had carved out its products business into Intellect Design Arena. Polaris FT later rebranded itself as Polaris Consulting and Services.
The Sebi order comes as a setback for Mr Jain, who had earlier this month, sold a majority stake in Polaris Consulting and Services to US-based Virtusa for about Rs 1,170 crore. (Read)
Mr Jain is the chairman and managing director of Intellect Design Arena. Shares in the company closed 5.16 per cent lower at Rs 268.55. He continues to be the chairman of Polaris, the company he founded in 1993 with just Rs 10,000.
Polaris shares closed 1.6 per cent higher as against a 0.75 per cent rise in the broader Nifty.
(With inputs from agencies)
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