Jaiprakash Associates chairman Manoj Gaur will move the Securities Appellate Tribunal (SAT) challenging market regulator Securities and Exchange Board of India's (Sebi's) order, penalising him and his family for insider trading.
“The findings in the order are completely erroneous and contrary to factual position. We are in the process of challenging the same before the SAT,” Gaur said in a statement. Sebi has imposed a penalty of Rs 10 lakh each on Gaur, his wife and brother for alleged insider trading in the company's shares.
It alleged that Manoj Gaur had access to unpublished price sensitive information of the company, which he communicated to his wife and brother. These individuals then traded in the stocks of the company, the order said.
The engineering conglomerate’s share price fell 2.5 per cent against a BSE Sensex which fell 0.12 per cent in a special trading session on Saturday.
“The findings in the order relate to purchase of 1,000 shares by my wife and 7,400 shares by my brother, between October 13 and 16, 2008. The purchase was not done based on any insider information and the said shares were not even sold,” Guar said in a release.