The Securities and Exchange of India (Sebi) has imposed a penalty of Rs 65 lakh on TAN Murti, head of investor relations of the then Satyam Computer Services, for alleged violations of insider trading norms in 2008-09.
Sebi said it levied the fine on Murti allegedly for indulging in insider trading when he was in possession of “unpublished price sensitive information relating to acquisition of Maytas Infra (MIL) and Maytas Properties (MPL) by the company”.
The regulator had conducted a probe relating to insider trading in the shares of Satyam Computer in 2008-09. Murti had "sold 14,500 shares of Satyam Computer on December 15, 2008" prior to the announcement, the regulator said.
According to Sebi order, Satyam Computer had announced the acquisition of MIL and MPL on December 16, 2008 and that the deal was cancelled the next day. The regulator said the information about the proposed deal was price sensitive in nature. On December 17, 2008, the price of the scrip fell 33.5% from previous close but after the cancellation of the deal, it recovered marginally on the NSE.
"In the instant case, the information was highly price sensitive and when the same was made public, the market reacted very adversely leading to a fall of 33.5% of share price which is quite substantial.
"The noticee (Murti) by selling 14,500 shares of Satyam Computer on December 15, 2008, has avoided a loss of R21.54 lakh," stated the order.