The Securities and Exchange Board of India on Friday disposed of an alleged insider trading case against former independent director of SpiceJet Ltd., KR Sasiprabhu, saying the charges could not be established against him.
It had been alleged that Sasiprabhu had traded in the scrip of SpiceJet while in possession of unpublished price sensitive information pertaining to the company's quarterly financial results.
Sasiprabhu, who was appointed as an independent director of SpiceJet on Dec. 1, 2015, had resigned from the position in May, 2018, SEBI noted.
The regulator conducted an investigation in the scrip of SpiceJet to ascertain possible violation of SEBI's prohibition of insider trading norms by certain entities as well as to find out whether requisite compliances had been observed by the airline and its officials involved for preparation of financial results for December 2015 quarter.
The probe found that the UPSI relating to financial results for the quarter ended December 2015 came into existence from Jan. 6, 2016, whereas, Sasiprabhu bought 2,000 shares of SpiceJet on Jan. 7, 2016.
SEBI, however, noted that following his appointment in December 2015, he attended the company's board meeting for the first time on Jan. 22, 2016, the date on which the board approved the financial results. Subsequent to this, the results were disseminated by SpiceJet.
He came to know of the proposed board meeting and details of financial results on Jan. 15, 2016, and Jan. 21, 2016, respectively and that he traded in the scrip much before he came to know of the proposed board meeting and financial results, the regulator noted.
"I conclude that the charge against the noticee (Sasiprabhu) that he had traded in the scrip of SpiceJet while in possession UPSI, does not stand established," SEBI Adjudicating Officer BJ Dilip said in an order.
Consequently, the adjudication proceedings initiated against Sasiprabhu has been disposed of, he added.
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