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Sebi notice to top funds, brokerage over insider trade: Manappuram shares crash


NEW DELHI: Shares of Manappuram Finance plunged 10 per cent to Rs 123.90 in morning trade on Friday after media reports suggested Sebi has served a show-cause notice on the company’s top management for breach of insider trading regulations.

Business Standard reported this morning that Sebi has issued show-cause notices to five asset management companies (AMCs), including SBI Fund Management, ING Mutual Fund (now Birla Sunlife) and BNP Paribas along with Ambit Capital, its former CEO Saurabh Mukherjea and MFL on charges of using price-sensitive information for trading in the scrip of Manappuram Finance (MFL) in March 2013.

“The markets regulator said these fund houses’ decision to exit the stock of MFL during the period in question appears to be based on an Ambit research report, which was ‘leaked’ to them before the formal earnings announcement for the fourth quarter (Q4) of 2012-13. It was alleged that the MFL management organised a conference call with fund managers and research analysts, in which they were given the profit warning for Q4,” the report said.

Quoting the Sebi notice, the report said MFL discussed the unpublished and price-sensitive information (UPSI) with Ambit on March 18 and 19, 2013, during the conference call, before it was disclosed to the stock exchanges in violation of insider trading, code of corporate disclosure and listing agreements.

Shares of Manappuram Finance traded 5.38 per cent down at Rs 130.25 on BSE around 10 am.





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