- Sun Pharma settled probe by SEBI into alleged violation of insider trading norms.
- It appears to be related to acquisition of Ranbaxy by Sun Pharma from Japanese drugmaker Daiichi.
Sun Pharmaceutical Ltd.'s Managing Director Dilip Shanghvi, Chairman Israel Makov and eight others have settled a probe by markets regulator SEBI into alleged violation of insider trading norms on a payment of Rs 18 lakh towards settlement charges.
While SEBI didn't disclose details of the case, it appears to be related to acquisition of Ranbaxy by Sun Pharma from Japanese drugmaker Daiichi, as the settlement with the regulator has also been done by former Ranbaxy Chief Executive Officer Arun Sawhney, Daiichi's director Kazunori Hirokawa, its former Chairman Takashi Shoda and its former Senior Executive Officer Tsutomu Une.
Shoda is said to have led Daiichi's acquisition of Ranbaxy in 2008, though the Japanese giant had to eventually sell its stake in the company to Sun Pharma in 2014.
Besides, the settlement has been done by Ranbaxy's former secretary S K Patawari; Sun Pharma's directors Sudhir V Valia and Sailesh Desai; and its company secretary Sunil Ajmera.
SEBI agreed to settle proposed adjudication proceedings in the case, pertaining to violation of the "internal code of conduct for prevention of insider trading" framed by the company, after it was approached by these 11 entities with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".
“The proposed adjudication proceedings for the alleged violation... are settled,” SEBI said in an order passed on Thursday, adding it would not initiate any enforcement action for the alleged defaults.
These 11 entities allegedly violated internal code of conduct for prevention of insider trading framed by the company under SEBI's PIT (Prohibition of Insider Trading) norms.
Also Read: Sun Pharma Posts Surprise Loss On Antitrust Litigation
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