Gujarat Heavy Chemicals Ltd (GHCL) Chairman and Managing Director Sanjay Dalmia and its former director, Pramod Jain, today levelled charges against each other on the manner in which shares of the company were traded.
Announcing the company annual results, Dalmia alleged that Jain, who was director on the board till he resigned yesterday, had been trading the company’s shares without making any disclosures.
“Under the law, it is mandatory for senior management and board members to inform the company if they have indulged in trading of the company’s shares, which tantamounts to insider trading,” Dalmia said.
With an intention to hammer down the share price, Jain was buying shares from the secondary market, he added.
Reacting to the allegation, Jain said he had bought around 140,000 shares between April 17 and 24. “I have not used any insider information, as the company never provided any information to me, despite several reminders to the management. In fact, I was not allowed to attend the board meeting on April 30,” Jain said.
Dalmia, the promoter of soda ash-maker, said the promoters would increase their shareholding in the company from about 18 per cent “to a comfortable level”, over the next six to eight months. The promoters’ stake in GHCL has declined to around 18 per cent from 40 per cent in FY08-09.
“We have not sold any shares. Some of the promoter shares were pledged and those people (to whom the shares were mortgaged) sold them,” he said.
Dalmia, along with 46 investment firms, has been barred by the Securities and Exchange Board of India (Sebi) from dealing in GHCL shares. Dalmia filed an appeal earlier this week against the Sebi order.
