INSUBCONTINENT EXCLUSIVE:
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basis of unpublished price-sensitive information six years ago.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
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.