A former executive director of Axis Capital along with another individual, on Friday, settled an insider trading case with the securities and exchange board of India (Sebi) by paying a total of Rs 1.13 crore as settlement.
Ashish Anup Nigam , who previously served as executive director at Axis Capital, and Nehal Milan Mehta also voluntarily agreed to stay away from the securities market for six months. In addition to the settlement amount, Mehta paid Rs 37.28 lakh towards disgorgement of 'unlawful gains' and interest.
The case related to alleged insider trading in the shares of BF Investment . According to Sebi, both parties applied for settlement under its regulations without admitting or denying the allegations.
Sebi's chief general manager Santosh Shukla, in his order, said that the proceedings against them, initiated through a show-cause notice dated 11 September 2024—have been closed. However, Sebi reserves the right to take further action if there is any misrepresentation or breach of settlement terms.
The case stemmed from an investigation into whether Mehta had traded in BF Investment shares while in possession of Unpublished Price Sensitive Information (UPSI) between 4 September 2022 and 20 March 2023.
BF Investment had informed stock exchanges on 30 December 2022 about receiving an initial public announcement from Axis Capital, on behalf of DGM Realities, Ajinkya Investment, and Sundaram Trading, for acquiring public shareholding and delisting the company. These acquirers were part of the promoter group of BF Investment.
Sebi found that the UPSI was active between 4 and 30 December 2022. Nigam, who was involved in the delisting process as a representative of Axis Capital, allegedly shared the UPSI with Mehta, who then traded in the company’s shares and made illegal gains of Rs 30.47 lakh.
The two parties have now paid the settlement and disgorgement amounts as confirmed by Sebi, effectively closing the matter.
Ashish Anup Nigam , who previously served as executive director at Axis Capital, and Nehal Milan Mehta also voluntarily agreed to stay away from the securities market for six months. In addition to the settlement amount, Mehta paid Rs 37.28 lakh towards disgorgement of 'unlawful gains' and interest.
The case related to alleged insider trading in the shares of BF Investment . According to Sebi, both parties applied for settlement under its regulations without admitting or denying the allegations.
Sebi's chief general manager Santosh Shukla, in his order, said that the proceedings against them, initiated through a show-cause notice dated 11 September 2024—have been closed. However, Sebi reserves the right to take further action if there is any misrepresentation or breach of settlement terms.
The case stemmed from an investigation into whether Mehta had traded in BF Investment shares while in possession of Unpublished Price Sensitive Information (UPSI) between 4 September 2022 and 20 March 2023.
BF Investment had informed stock exchanges on 30 December 2022 about receiving an initial public announcement from Axis Capital, on behalf of DGM Realities, Ajinkya Investment, and Sundaram Trading, for acquiring public shareholding and delisting the company. These acquirers were part of the promoter group of BF Investment.
Sebi found that the UPSI was active between 4 and 30 December 2022. Nigam, who was involved in the delisting process as a representative of Axis Capital, allegedly shared the UPSI with Mehta, who then traded in the company’s shares and made illegal gains of Rs 30.47 lakh.
The two parties have now paid the settlement and disgorgement amounts as confirmed by Sebi, effectively closing the matter.
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