Insider trading: SEBI bars Poonawalla Fincorp MD, 7 others from securities market

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In February 2021, SEBI's system generated insider trading alerts related to Poonawalla Fincorp's shares Securities and Exchange Board of India (SEBI) on Wednesday barred Poonawalla Fincorp Managing Director Abhay Bhutada and seven other entities from the securities market for alleged insider trading activities in the shares of the company, which was earlier known as Magma Fincorp.
Besides, the regulator has ordered impounding of wrongful gains worth over ?13 crore, according to an interim order. In February 2021, the watchdog's system generated insider trading alerts related to the company's shares. It was also the time around when an announcement was made regarding Rising Sun Holding Pvt Ltd (RSHPL), part of the Poonawalla Group, acquiring a controlling stake in Magma Corp. Following the alerts, SEBI conducted a preliminary examination into the shares of Magma Corp to check whether there have been insider trading activities.
The Securities and Exchange Board of India is the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance, Government of India. It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.
Founded: 12 April 1992
Sector: Securities market
Jurisdiction: India
Headquarters: Mumbai
Agency executive: Ajay Tyagi (Chairperson)