Shares of L&T Finance Holdings fell over one per cent today, a day after market regulator Sebi barred an overseas hedge fund on charges of carrying out insider trading in the scrip.
However, the Securities and Exchange Board of India (Sebi) has not found any irregularity on the part of the company.
L&T Finance Holdings' scrip declined over one per cent to end the day at Rs 76.15. After opening at Rs 77, shares of the company had touched an intra-day low of Rs 75.60.
However, shares of the parent company Larsen & Toubro registered marginal gains to close at Rs 1,688.70.
Meanwhile, reflecting bullish trends, the 30-share benchmark Sensex touched an all-time intra-day high of 25,419.14 points and settled for the day at a new closing high of 25,396.46 points.
In an interim order passed yesterday, Sebi had barred Hong Kong-based hedge fund manager Factorial Capital Management from the Indian securities market after finding its Cayman Islands-based fund - Factorial Master Fund - to have allegedly profited through 'short-selling' in shares of L&T Finance Holdings on the basis of unlawful access to insider information about the company.
The fund was set up by India-origin individual Barun Agarwal nearly two years ago and presently he is the chief investment officer there.
"Factorial believes that the allegations outlined in an interim order from the Indian regulator (SEBI) are without merit.
"The regulator has given 21 days to Factorial to respond. Factorial will continue to fully co-operate, and is confident that a complete investigation will fully absolve it," a Factorial spokesperson said today.
Factorial Capital Management Ltd is an alternatives asset manager and Factorial Master Fund is its flagship fund.
