The Market regulator, SEBI has banned Future Group founder Kishore Biyani, his brother Anil Biyani and Future Corporate Resources Ltd (FCRL) from securities market for indulging in insider trading activity.
Another Punishment
SEBI not only barred the Biyani brothers and FCRL from buying, selling or dealing in the shares of FRL but also imposed a penalty of Rs 1 crore on each of them.
It has also directed the three to “disgorge” Rs 17.78 crore along with 12% interest.
About Insider Trading case
The case dates back to 2017 where disgorgement pertains to money allegedly earned by them from trades conducted on the basis of unpublished price sensitive information.
An additional disgorgement of Rs 2.75 crore is to be jointly paid by Future Corporate Resources and FCRL Employee Welfare Trust.
Impact
As per Sebi order any deal that’s awaiting approval will not be considered, which means that it won’t pertain to the proposed sale of Future’s retail assets to Reliance Retail.
Statement of SEBI
“Debarment/restraint/freeze imposed under this order shall not apply to those existing holding of securities of such debarred entities, in respect of which any scheme of arrangement under Section 230-232 of the Companies Act, 2013, is approved by NCLT, requiring extinguishment of such securities and/or receipt of other securities in lieu of such securities.”
Comment from Future Group
“The SEBI Order is untenable since it treats a well-anticipated and publicly well-known impending reorganisation of the home furnishing businesses that the Future Group effected in 2017 to be unpublished information.
The order will be challenged in exercise of the statutory right to appeal.”
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