The Securities and Exchange Board of India (Sebi) has banned two individuals from participating in the securities markets for one year and has imposed a total fine of ₹25 lakh for their involvement in insider trading related to Jagsonpal Pharmaceuticals. Specifically, Maneesh Kumar Jain has been fined ₹15 lakh, while S V Subha Rao, the former Chief Financial Officer of Jagsonpal Pharmaceuticals Ltd, has been fined ₹10 lakh, according to an order issued on Friday.
In addition to the fines, Sebi has ordered Maneesh Kumar Jain to return ₹31.39 lakh along with interest at a rate of 12% per annum from February 22, 2022, until he pays the amount back.Sebi’s order highlighted that Rao, as an “insider,” shared unpublished price-sensitive information (UPSI) about a significant acquisition of shares with Maneesh Kumar Jain. This information led Jain to trade in Jagsonpal Pharmaceuticals Ltd (JPL) shares on February 21, 2022, during the time when the information was not public, which is a violation of insider trading regulations.
The regulator also found that Jain made a profit of ₹31.39 lakh by trading in JPL shares while having access to this sensitive information from Rao.As a result, Sebi concluded that Maneesh Kumar Jain violated the Prohibition of Insider Trading (PIT) regulations.
This decision followed a thorough analysis by the National Stock Exchange (NSE) to identify clients whose trading patterns indicated potential insider trading based on UPSI, which was deemed price-sensitive by the exchange. Subsequently, Sebi conducted a detailed investigation to confirm whether the individuals traded in JPL shares while possessing UPSI and to check for any violations of its regulations.
