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Saurabh Mukherjea pays Rs 1.38 cr to settle insider trading case with Sebi


Saurabh Mukherjea, former chief executive of Ambit Capital has settled a case of alleged violation of insider trading and fraudulent trade practices regulations with Securities and Exchange Board of India by paying a settlement amount of Rs 1.38 crore.

Last year in May, the regulator had issued a show cause notice to Mukherjea alleging he procured price- sensitive information from the senior management of Mannapuram Finance (MFL) and communicated it through a research report before the information was made public.

The regulator’s notice stated that MFL in its minutes of the board meeting held on March 13, 2013 had recorded that there was a probability that the company may have to report negative profit for the quarter ended 31st March 2013 contrary to the expectations of stakeholders. On March 18, Mukherjea met senior officials of MFL procured the price sensitive information and communicated the same through a research report.

The information of negative profit for the fourth quarter of FY2012-13 is deemed to be the price sensitive information. Further, when the information was made public, the price of the scrip declined by 14.25% on March 20, 2013. MFL announced its financial results for the quarter ended March 31, 2013 on May 15, 2013, Sebi said.

“Mr. Saurabh Mukherjea has not maintained the confidentiality of the price sensitive information and has thereby violated the Code of Conduct for Prevention of Insider Trading. Further, the act of commission of releasing research report prior to making the information public resulted in fraud on innocent investors, who were not privy to the said price sensitive information and dealt in the scrip of MFL during 19th and 20th of March 2013,” Sebi said in its order.

In 2018, Mukherjea quit Ambit Capital and set up Marcellus Investment Managers, a provider of portfolio management services.





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