sebi:WTM/PS/11/IVD/MAY/2015
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Facts / Headnote
Interim impoundment of alleged unlawful gains with interest from bank accounts, with freezing of demat securities to extent of shortfall
Provisions invoked
- s. 19
Regulations
- Reg. 2
Parties
- Mr. Gopalakrishnan C.
- V. Karuppiah (HUF) (Karta: Mr. V. Karuppiah)
- Mr. A.R. Murugappan
- Mr. A. Vellayan
Holding
SEBI prima facie found insider trading in Sabero shares on the basis of UPSI regarding acquisition by Coromandel and directed impounding of Rs.1,92,07,206 in relation to Mr. Gopalakrishnan C. and Rs.23,43,219 in relation to V. Karuppiah (HUF), including 12% simple interest, from the bank accounts of Mr. Gopalakrishnan C., V. Karuppiah (HUF), Mr. A.R. Murugappan and Mr. A. Vellayan.
Full text
Page 2 of 8 the acquisition. Sabero on June 02, 2011, informed the Exchanges about the acquisition. On the same day, i.e., June 02, 2011, a public announcement was made by Coromandel regarding the acquisition of Sabero.
Page 3 of 8 Subramaniam. M (maintaining bank account with the same branch) on May 28, 2011. The same amount was utilized by Mr. Goplakrishanan C. for making payment to the trading member on the same day. Mr. Subramaniam. M in turn had received the said amount of `1 Crore from his father; Mr. A.R. Murugappan on the very same day i.e. May 28, 2011. An examination of the bank account of statement of Mr. A.R. Murugappan held at ICICI Bank, Mylapore Branch revealed that he had pre-maturely closed his fixed deposit on May 28, 2011, which was worth about `1 Crore in order to transfer the said amount. It is important to note that all these transactions had taken place on a single day i.e. May 28, 2011. v. After the sale of the discussed shares, Mr. Gopalakrishnan. C had paid `1.02 crores to Mr. Subramaniam. M, on June 21, 2011 i.e. after 24 days from the date of receipt of amount. Further, out of the gain i.e. about `1.30 crore, `1 crore was invested by Mr. Gopalkrishnan C. in fixed deposits with City Union Bank Chennai for a maturity period of 1 year. vi. Mr. Goplakrishanan C. had introduced Mr. Subramaniam M. and Mr. A.R. Murugappan to the broker Nirmal Bang Securities Pvt. Limited during November 2010. vii. Mr. Gopalakrishnan. C. had bought 3,19,500 shares of Sabero on May 23, 2011 and May 24, 2011 i.e. before the announcement of UPSI. After the UPSI was announced on May 31, 2011, he had sold all the said shares between June 03, 2011 to June 15, 2011 as detailed herein under: Date
Page 4 of 8 Particulars Amounts in ` Sale Value=3,19,500 shares x Rs.125.96 4,02,44,220/- Less: Buy Value=3,19,500 shares x Rs.85.15 (-) 2,72,05,425/- Gains ` 1,30,38,795/-
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Source: SecMarx — sebi:WTM/PS/11/IVD/MAY/2015. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.