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SAT lifts Sebi ban on ex-Gammon head

Gammon India is currently fighting a bankruptcy petition filed by banks .

ET Bureau|
Nov 09, 2019, 09.46 AM IST
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PTI
Sebi-PTI
The stock market regulator had found Rajan to have been guilty of trading in shares on the basis of unpublished price-sensitive information six years ago.
New Delhi: The Securities Appellate Tribunal (SAT) has overturned a Sebi order banning former Gammon India chairman Abhijit Rajan from trading in shares for alleged insider trading.

The stock market regulator had found Rajan to have been guilty of trading in shares on the basis of unpublished price-sensitive information six years ago.

The appellate tribunal in an order released on Friday said the information itself was not price sensitive in its view. It also noted that Rajan had been able to demonstrate that he required the funds that he raised from the shares sold by him for purposes of infusing capital in one of his companies that was undergoing corporate debt restructuring at the time.

ET saw a copy of the SAT order.

The information allegedly used by Rajan pertained to a joint investment agreement between Gammon India and Simplex for construction of two highway projects which was later cancelled.

Securities and Exchange Board of India (Sebi) had alleged that the information about the cancellation was available to Rajan as an insider and he used the same to sell the company’s shares ahead of an official announcement to the stock exchanges.

“I was banned to trade in capital markets and could not raise funds crippling the company on such a non-issue,” Rajan told ET when contacted. He claimed that his reputation had been tarnished by the insider trading charges.

Gammon India is currently fighting a bankruptcy petition filed by banks in the National Company Law Tribunal.

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