Markets regulator Sebi on Friday cleared seven present and former promoters of FMCG company Emami of insider trading charges.
Disposing of the case related to insider trading charges against Emami promoters, Sebi in an order said the allegations against the promoters stand "not proved".
It was alleged that one promoter Amitabh Goenka had sold of 64,000 shares of Emami to six other promoters on May 21, 2015 while they were in possession of unpublished price sensitive information (UPSI) relating to the Kesh King acquisition in violation of the PIT (Prohibition of Insider Trading) Regulations.
The promoters are Amitabh Goenka, Bhanu Vyapaar, Diwakar Viniyog, Emami Highrise, Suraj Viniyog, Suntrack Commerce and Emami Enclave Makers.
Emami on June 2, 2015, had informed BSE that it had entered into an agreement with one Sanjeev Juneja to acquire his hair and scalp care business under the 'Kesh King' and allied brands, according to the Sebi order.
With regard to Emami Enclave Makers, Sebi said though it is one of the promoters of the FMCG major, the evidence with respect to it being connected or deemed connected to persons having access to UPSI is "not forthcoming".
The charge against Emami Enclave Makers stands "not proved", the regulator said.
As per the order, though the promoters other than Emami Enclave Makers have been concluded as insiders, there has been no material available on record to show that the UPSI was in access by them.
Sebi said the charge of insider trading being of a serious nature and there needs to be a higher degree of proof for the preponderance of probability having regard to the gravity of the charge, the benefit of doubt is to be given to the promoters.
Therefore, the promoters have not violated the provisions of PIT Regulations, Sebi said.