Hindustan Lever Ltd will file its reply to the Securities and Exchange Board of Indias notice, alleging insider trading by the multinational, today.
A Lever spokesperson yesterday said the company still had time and would reply today. We have not yet sent our reply, we will be sending it on Tuesday, he said. The spokesperson denied that the company had sought a further extension. Sebi officials were unavailable for comment.
On August 4, Sebi had sent its communication of findings to Hindustan Lever, citing evidence in support of its claim that Lever had indulged in insider trading. According to the findings, Lever bought eight lakh shares of Brooke Bond Lipton India from UTI between March and April 1996, about a fortnight before BBLILs merger with HLL. Lever was given 15 days to reply to the notice, but it sought a further extension till September 9. Lever is believed to be consulting several legal luminaries, including Justice P N Bhagwati.
In its defence, Lever had argued that a company cannot indulge in insider trading. It added that it had bought BBLIL shares from UTI only to cancel them at a later stage, and that the deal did not have a profit motive.