On January 5, SEBI issued three adjudication orders, pulling up Jaiprakash Associates’s Executive Chairman Manoj Gaur, his wife Urvashi Gaur, brother Sameer Gaur, whole-time director S.D. Nailwal, and Senior Vice President (corporate affairs) and Company Secretary Harish K. Vaid for alleged insider trading.
The executives were accused of using their positions to trade in the company’s shares in 2008, while in possession of unpublished price-sensitive information. SEBI found them to be in violation of its rules and imposed a fine of Rs 70 lakh.
After a probe into the dealings of shares during September 29, 2008 to October 27, 2008, Sebi had found them guilty of norms related to insider trading as it charged Urvashi and Sameer Gaur of trading in the stock on the basis of unpublished price sensitive information relating to financial results of the company.
Sebi said the company received the trial balances (worksheet in which the balances of all ledgers are compiled into debit and credit) for the quarter ended September 30, 2008 from its various units in the first week of October 2008. The consolidated trial balance for the quarter ended September 30, 2008 was available on October 12, 2008 and the company’s board approved the results on October 21, 2008 as well as declared an interim dividend of 15 per cent. It had also approved the issuance of shares on a rights basis.