MUMBAI: The Securities and Exchange Board (Sebi) has passed settlement orders in two cases involving insider trading linked to Adani group shares by Ajay Bhatia and Supreet Singh Luthra. Ajay Bhatia, former managing director of Quantlase Lab which is a subsidiary of International Holding Company, agreed to settle insider trading charges by paying Rs 1.04 crore along with disgorgement of Rs 55.34 lakh in unlawful gains, according to a statement from the Sebi.
The case came to light after a corporate filing in April 2022, wherein Adani Green Energy disclosed the preferential issuance of over 20 million shares to IHC Capital Holding, valued at Rs 3,850 crore. The announcement triggered a sharp 7.20% surge in Adani Green shares on that day, reaching an intra-day high of Rs 2,368.90.
The regulator Sebi had alleged that Bhatia received unpublished price sensitive information via emails on April 2 and 4, 2022, from insiders at Adani Green and subsequently passed it to Supreet Singh Luthra. Further, Bhatia executed multiple trades in Adani Green, Adani Enterprises, and Adani Transmission worth Rs 8.69 crore, generating unlawful gains of Rs 55.34 lakh.
After deliberation by Sebi’s high-powered advisory committee, the settlement terms were accepted, including a voluntary debarment from the market for six months. The settlement was finalized after receiving the stipulated amounts.“The applicant, on account of being the managing director of a subsidiary of IHC, was allegedly a “connected person” in terms of regulation 2(1)(d)(i) and an “insider” in terms of regulations 2(1)(g)(i) and 2(1)(g) (ii) of prohibition of insider trading regulations by way of frequent communication with officials of Adani Green.
It has been found that the applicant received insider information from two insiders by emails dated April 2, and 4, 2022, respectively,” the settlement order said. Separately, Supreet Singh Luthra, a tax consultant associated with Ajay Bhatia, settled his case by agreeing to pay Rs 40 lakh along with Rs 13.13 lakh in disgorgement of unlawful gains.
The case involved trading in Adani Green, Adani Enterprises, and Adani Transmission shares based on insider information received during constant contact with Ajay Bhatia. On April 8, 2022, Luthra purchased shares worth Rs 1.32 crore, generating unlawful gains of Rs 13.13 lakh.The Sebi panel recommended settlement terms, which were later approved by the whole-time members of the board. Luthra also undertook a voluntary debarment from the markets for six months.Under Sebi’s settlement regulations, parties can settle cases with regulator without admitting or denying the guilt by paying settlement fee, which is based on a formula.