Business Today
Loading...

SEBI bars Kishore Biyani from accessing securities market for 1 year

Sebi's order came in relation to an investigation in use of unpublished price sensitive information to trade in shares of FRL in 2017.

twitter-logoBusinessToday.In | February 3, 2021 | Updated 21:27 IST
SEBI bars Kishore Biyani from accessing securities market for 1 year
SEBI has also restrained Biyani from buying, selling or dealing in the securities of Future Retail Limited (FRL), directly or indirectly, in any manner whatsoever, for a period of 2 years.

Markets regulator SEBI on Wednesday barred Future Group CEO Kishore Biyani from accessing securities market for a period of 1 year.

The Securities and Exchange Board of India (SEBI) also restrained Biyani from buying, selling or dealing in the securities of Future Retail Limited (FRL), directly or indirectly, in any manner whatsoever, for a period of 2 years.

SEBI found Biyani in violation of the Prohibition of Insider Trading Regulations, 2015, by trading in shares of FRL on the basis of unpublished price sensitive information (UPSI) during March 10-April 20, 2017.

Also read: Future Retail appeals against status quo order on Future-RIL deal

The case pertains to an announcement made by FRL on exchanges on April 20, 2017, which resulted in demerger of certain business of FRL and had a positive impact on the scrip of the company.

SEBI said Future Corporate Resources Private Limited (FCRPL), which was part of the promoter group of FRL, traded in the scrip of the company on the basis of UPSI. At that time, Biyani was the CMD of FRL and the director of FCRPL, and was privy to UPSI.

The regulator also asked Biyani, along with FCRPL and Anil Biyani, a relative of Kishore Biyani and director of FCRPL, to jointly and severally disgorge an amount of Rs 17.78 crore along with interest at the rate of 12 per cent per annum from April 20, 2020, till the date of actual payment.

Besides, SEBI also imposed a penalty of Rs 1 crore on Kishore Biyani, to be paid within 45 days from the receipt of order.

The regulator also took action against FCRL Employee Welfare Trust and few other individuals who were at that time part of Future Group.

Also read: Sebi revises objective, eligibility criteria of innovation sandbox with graded entry norms

Also read: 'Dog in a manger': Kishore Biyani's description of Amazon

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close