sebi: Sebi bars 15 entities and people in ZEEL insider buying and selling case


Mumbai: The Securities and Alternate Board of India(Sebi) has barred 15 entities and people, together with some prime executives of overseas and home broking homes like UBS India and Edelweiss Broking, for allegedly indulging in insider buying and selling within the shares of Zee Enterprises in August, 2020.

The regulator has additionally impounded the alleged ill-gotten good points of Rs 23.84 crores from these entities and people.

Sebi’s surveillance alert system detected a suspicious buying and selling sample within the shares of Zee across the announcement of the outcomes for the quarter ended June 30, 2020, in accordance with the regulator’s interim order on Thursday. The outcomes had been declared put up buying and selling hours on August 18, 2020. The corporate had reported a pointy enhance in earnings which resulted in a 13 per cent enhance within the share value on August 19,2020.

In response to Sebi’s interim order, a Zee spokesperson mentioned Bijal Shah has been ‘relieved from his duties’ with the corporate. “The corporate takes any such subject very severely and can take applicable motion as wanted,” mentioned the corporate spokesperson.

In accordance with Sebi’s interim order, an evaluation of the alerts generated revealed {that a} group of linked entities had taken a protracted place within the shares within the money and derivatives segments. Put up announcement, these entities had squared off the lengthy positions and generated earnings.

The regulator’s examination primarily based on social media, name information data and financial institution assertion evaluation revealed that Bijal Shah, head of the monetary planning and evaluation, technique and investor relations at Zee, had allegedly handed on inside data to Gopal Ritolia, director, UBS India and Jatin Chawla, former director, Credit score Suisse.

Sebi alleged that each the people whereas in possession of unpublished value delicate data(UPSI) took substantial lengthy positions in ZEE shares, ranging from August 11, 2020, earlier than the announcement of the monetary outcomes, within the buying and selling accounts of their moms.

Sebi mentioned Chawla had additionally handed on the data to Amit Jajoo of Edelweiss Broking. Jajoo, in flip, had handed on the UPSI to his cousin Manish Jajoo, a supplier at Edelweiss Broking in Surat. Each of them additionally took substantial lengthy positions in ZEE shares, utilizing the buying and selling accounts of seven members of the family, the interim order mentioned.

The regulator mentioned all these entities had a big focus within the shares of Zee solely across the announcement as in comparison with the sooner durations. They’d used the buying and selling accounts of their members of the family to keep away from regulatory detection.

“It was additionally noticed that Gopal Ritolia and Jatin Chawla via the buying and selling accounts of their respective moms had taken important positions within the scrip of ZEEL earlier than the announcement of different price-sensitive bulletins (viz. monetary outcomes for Q2 FY 2020, Q2 FY 2021 and the launch of the Cinema to Residence service, ZEE Plex),” Sebi whole-time member Madhabi Puri Buch mentioned in her order on Thursday.

Sebi mentioned each Ritolia and Chawla had been batch mates at IIM, Lucknow. Zee’s Shah, Ritolia and Chawla knew one another for greater than 15 years, having labored at IIFL Securities and different brokerages previously.


Supply hyperlink