Shares of Ranbaxy Laboratories and Sun Pharmaceutical Industries are trading lower by up to 2% in an otherwise firm market after Andhra Pradesh High Court asked stock exchanges as well as Securities and Exchange Board of India (Sebi) to maintain an interim status-quo on the merger or an arrangement or an amalgamation of Sun Pharma and Ranbaxy Laboratories.
Ranbaxy Laboratories is trading lower by 2% at Rs 475 on the NSE. The stock opened at Rs 475 and touched a low of Rs 465 so far. Sun Pharma too, down 1% at Rs 634, after hitting low of Rs 622 in early morning deals on the NSE.
The order, issued on Friday, was in response to a petition filed by some individual investors, who alleged insider trading in Ranbaxy shares before announcement of the deal on April 6.
The Andhra Pradesh High Court has said that unless and until they hear this and gives a decision on this matter of an insider trading; no clearances should be given to this deal.
When the insider trading issues were talked about earlier, Sun Pharma claimed that they were not involved and they had not violated any rules. The company, maintained that they have not violated any of the insider trading regulations in the purchase of Ranbaxy shares and that the company holds the code of conduct for share purchase.
Ranbaxy Laboratories is trading lower by 2% at Rs 475 on the NSE. The stock opened at Rs 475 and touched a low of Rs 465 so far. Sun Pharma too, down 1% at Rs 634, after hitting low of Rs 622 in early morning deals on the NSE.
The order, issued on Friday, was in response to a petition filed by some individual investors, who alleged insider trading in Ranbaxy shares before announcement of the deal on April 6.
The Andhra Pradesh High Court has said that unless and until they hear this and gives a decision on this matter of an insider trading; no clearances should be given to this deal.
When the insider trading issues were talked about earlier, Sun Pharma claimed that they were not involved and they had not violated any rules. The company, maintained that they have not violated any of the insider trading regulations in the purchase of Ranbaxy shares and that the company holds the code of conduct for share purchase.
