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Top Class Capital Markets faces a setback as the Securities Appellate Tribunal (SAT) has dismissed its appeal against market regulator Sebi's order over alleged insider trading in Aurobindo Pharma.
SAT while dismissing the stockbroker's appeal on Tuesday, stated that the appellant has traded and purchased the shares of Aurobindo Pharma when in possession of UPSI (Unpublished Price Sensitive Information).
Top Class Capital Markets has been under Sebi radar since 2019. Before SAT, the broker filed appeals against two Sebi orders.
Firstly, Sebi's order in September 2019, where it levied a penalty to the tune of ₹7.5 crore on the broker. Secondly, in another order in August 2020, Sebi restrained Top Class Capital from trading in securities markets for one year, and further, the firm was banned from dealing with the shares of Aurobindo Pharma for a period of three years.
Additionally, the market watchdog directed the firm to disgorge an amount aggregating to ₹3.78 crore as a notional profit with a 12% per annum interest rate.
Following the Sebi order, Top Class Capital sought relief from SAT.
Under the insider trading case, Sebi found that Top Class Capital traded and bought Aurobindo shares from July 22, 2008, to March 3, 2009, while being in possession of UPSI which was regards to certain licensing and supply agreements entered between Pfizer and Aurobindo. During the process, the stockbroker made a notional profit of ₹3.78 crore.
Thereby, Sebi's order followed an investigation into the trading of Aurobindo scrip from July 2008 to March 2009. Also, in the matter, Aurobindo Pharma along with promoter P V Ramprasad Reddy, his wife P Suneela Rani, and three other entities settled the case with Sebi after paying charges of Rs22 crore.
On BSE, Aurobindo stock today finished at Rs634.80 apiece up by Rs8.40 or 1.34%. The stock has touched an intraday high and low of Rs639 per piece and Rs623 per piece respectively.
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