The Securities and Exchange Board of India (Sebi) also directed that the investigation must be completed within six months to conclude the matter expeditiously, while disposing of its earlier interim order, related to impounding of illegal gains, passed in May last year.
The regulator has decided to dispose of the interim order after Vellayan, Chairman of the Murugappa Group, his relative A R Murugappn and Gopalkrishnan C, V Karuppiah had complied with Sebi's directive and created a fixed deposit with a bank to the tune of Rs 2.20 crore.
The matter relates to alleged trading in the scrip of Sabero on the basis of 'unpublished price sensitive information' (UPSI) in 2011 pertaining to the acquisition of shares of Sabero by Coromandel International.
In an order passed today, Sebi said overall there were 19 suspected entities (including Gopalakrishnan and Karuppiah -HUF), who traded in the shares of Sabero during the investigation period. These entities too had never traded in Sabero shares in six months time before the probe period.
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These entities have also made gains ranging between Rs 60 crores and Rs 2.98 crore by trading in the shares of Sabero.
The regulator also said this was a "fit case of re-investigation and Sebi should employ all the investigative powers entrusted to it to unearth the entire truth and to find out the role of each of the suspected entities vis a vis the persons/entities privy to the UPSI including the noticees herein."
The regulator also found that including Vellayan, there were in all 69 persons/entities comprising of the management of Coromandel and Sabero, besides the employees and professionals of the two firms, who were privy to unpublished price sensitive information.