Sebi drops insider trading charges against Dynamatic Technologies CEO

The market regulator dropped the case as the Securities and Appellate Tribunal (SAT), and then the Supreme Court, found no wrongdoing

After having imposed a Rs 3.83-crore penalty on Udayant Malhoutra, the majority owner and chief executive of aerospace manufacturer Dynamatic Technologies (DTL), on charges of insider trading, Sebi has dropped the case as the Securities and Appellate Tribunal (SAT), and then the Supreme Court, found no wrongdoing.

The markets regulator had charged Malhoutra with trading in the company’s shares in 2016 while in possession of unpublished price sensitive information (UPSI). Malhoutra appealed to the SAT, which exonerated him.

The appellate tribunal ruled that Sebi had passed ex-parte orders, normally done in situations of extreme urgency, without giving Malhoutra a hearing or the