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Mumbai:
Securities Exchange Board of India (SEBI) has found DSQ
Holdings (DSQH) guilty of insider trading in the shares
of DSQ Biotech (DSQB) and debarred it from dealing in
the securities market for five years with immediate effect.
DSQH
is one of the promoter group companies of DSQB.
In
his order dated 27 February, Sebi chairman G N Bajpai
said: “It has been concluded that shares were purchased
by DSQH on the basis of unpublished price-sensitive information
of the impending rights issue of DSQB and indulged in
insider trading.”
There
was a steep jump in the share price of DSQB both in terms
of price and volume during the June-December 1994 period.
Thereafter,
the rights issue of the company opened for subscription
and immediately after the closure of the rights issue,
the DSQB scrip once again witnessed movement both in terms
of price and volume, which sustained till the first quarter
of 1996.
According
to the order, the information that was received or accessed
by DSQH regarding the impending rights issue of DSQB was
neither available to the other shareholders nor was it
made public.
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