In India last week, the Supreme Court upheld a sectoral tribunal’s ruling that found the CFO of Wockhardt, Rajiv B. Gandhi, and others guilty of insider trading. The court rejected Gandhi’s plea challenging the judgment of the Securities Appellate Tribunal, which had in turn refused to set aside a penalty imposed by the Securities and Exchange Board of India (SEBI) for insider trading violations. Gandhi argued that he had not executed any trade and could not be held liable for insider trading, according to the Business Standard.
SEBI found Gandhi, his wife, and sister guilty of insider trading and imposed a penalty of Rs 5 lakh on each of them “on the ground that they had traded in the scrip of Wockhardt on the basis of unpublished price sensitive information and the same was not available to the investors in general.” SEBI alleged that as company secretary and CFO, Gandhi had access to the material information pertaining to the financial position of the company.
According to this conversion chart, Rs 5 lakh converts to approximately US$10,888.