Lawstreet Journal

SEBI Penalizes Future Corporate Resources Pvt. Ltd, founder and co-founder of Future group and five others For Insider Trading [READ ORDER]

Lawstreet Journal 5 Feb 2021 9:30pm

Image courtesy: Lawstreet Journal Executive SEBI Penalizes Future Corporate Resources Pvt. Ltd, founder and co-founder of Future group and five others For Insider Trading [READ ORDER]

The Securities and Exchange Board (SEBI) of India has penalized Future Corporate Resources Pvt Ltd, Kishore Biyani and Anil Biyani, founder and co-founder of Future group respectively, and five others for insider trading..

The SEBI found that Future Corporate Resources and FCRL Employee Welfare Trust purchased Future Retail's shares prior to the public announcement relating to the demerger of some of its businesses was made on April 20, 2017.

The SEBI further found that trades were authorised by Kishore Biyani and Anil Biyani, who hold beneficial interest in 32% and 15% shares of FCRL, respectively.

PENALTIES IMPOSED:

  • They have been have been prohibited from dealing in securities market for a period of one year.
  • They have been directed to jointly disgorge an amount of Rs 17.78 crore, along with 12% interest from April 20, 2020 onwards till the date of actual payment,which reflects the undue profits made by Biyanis, FCRL and other notices through their trade of shares on the basis of Unpublished Price Sensitive Information(UPSI), as per SEBI.
     
  • FCRL and FCRL Employee Welfare Trust has been additionally directed to disgorge an amount of Rs. 2,75,68,650/- along with an interest at the rate of 12% per annum from April 20, 2020 till the date of actual payment.
  • An additional penalty of Rupees One Crore each under Section 15G of the SEBI Act, 1992 on FCRL and Biyanis.

The order relates to the trade of shares of Future Retail Ltd (FRL) between March 10, 2017 to April 20, 2017 on the basis of unpublished price sensitive information in contravention… Continue Reading...


Tagged: Securities and Exchange Board of India (SEBI)  
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