SEBI confirms ban on five people for insider trading in Zee Entertainment stock
Markets regulator Securities and Exchange Board of India (SEBI) on Monday confirmed its earlier direction passed against five persons barring them from the securities market for indulging in insider trading in shares of Zee Entertainment Enterprises Ltd. .
SEBI, in its 43-page confirmation order, said, “Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are prohibited from directly or indirectly buying, selling or transacting securities till further orders.” ” .
However, they are allowed to buy and sell units of mutual funds.
The regulator said a detailed investigation is underway in the matter, which may bring out in detail the omissions or additional role of the commission, if any, of these five persons.
The market regulator will pass a separate order after giving an opportunity of being heard to other entities which are not included in the interim order but against whom the interim order has been passed.
The latest directive comes after 15 entities, including these five individuals, were barred from the securities markets from the securities markets for indulging in insider trading in Zee’s shares, through an interim in August.
The regulator had observed that a group of entities linked or related had taken long positions in shares in the cash and derivatives segment.
After the announcement of the results for the first quarter of FY 2020, the entities closed long positions and made huge profits.
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