INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Markets regulator Sebi has ordered impounding of alleged illegal gains worth over Rs 1.02 crore from ADF Foods' promoters Bhavesh
Thakkar and Priyanka Thakkar and four others in an insider trading case.
The other four are Pallavi N Mehta, Shefali B Mehta, Navin M Mehta
and Abhishek Mehta.
As per Sebi's order, on July 27, 2016, ADF Foods informed the BSE and NSE that the board of directors in its meeting on
the same date had approved a buyback of equity shares for an aggregate amount not exceeding Rs 18 crore.
On May 21, 2016, the discussion of
idea to under take buy back or payment of dividend was first tabled at a meeting, Sebi said.
Therefore, Sebi considered the time period from
May 21-27 July 2016 as unpublished price sensitive information (UPSI) period when the price sensitive information of buyback remain
undisclosed.
Sebi conducted a probe and found that entities had access to UPSI and traded in the scrips of the firm during the May 21-July
27, 2016 (UPSI period).
The regulator further said that it prima facie found that 'insider' Bhavesh Thakkar being promoter and executive
director of the firm communicated UPSI to other entities whom Sebi classified them as insiders as they were related to Bhavesh and his
promoter wife Priyanka.
Priyanka, being a promoter, was involved in the fund transfer from her husband (Bhavesh Thakkar) to the other four
entities and vice-versa for their trades in scrips of the firm during the UPSI period and thus prima facie violated insider trading norms,
the regulator said.
Regarding the other four, Sebi noted that Navin Mehta and Abhishek Mehta, being insiders, traded in the shares of ADF
Foods through the trading accounts of Pallavi Mehta and Shefali Mehta when the price sensitive information remained undisclosed in violation
of insider trading regulations.
Accordingly, Sebi ordered to impound the alleged unlawful gains of Rs 1,02 crore (alleged gains of 77 lakhs
with interest of Rs 25 lakh) to be paid jointly and severally.
The regulator further added that entities may file their replies to Sebi
within 21 days from the date of receipt of this order, if they so desire.
