The Securities and Exchange Board of India (Sebi) on Thursday barred 15 entities, including individuals, from the capital markets for indulging in insider trading in the scrip of Zee Entertainment Enterprises Ltd (ZEEL). The regulator also ordered impounding of ill-gotten gains to the tune of Rs 23.84 crore from certain entities.
The 15 entities are — Bijal Shah, Gopal Ritolia, Jatin Chawla, Amit Bhanwarlal Jajoo, Manish Kumar Jajoo, Gomati Devi Ritolia, Daljit Gurucharan Chawla, Monika Lakhotia, Pushpadevi Jajoo, Bhawarlal Ramniwas Jajoo, Bhawarlal Jajoo HUF, Ritesh Kumar Kamalkishore Jajoo, Successure Partners, Yash Anil Jajoo and Vimla Somani.
The order, issued by Whole-Time Director Madhabi Puri Buch, comes after the surveillance alert system at Sebi detected suspicious trading patterns in the scrip of ZEEL around the announcement of the financial results for Q1FY20, declared post-trading hours on August 18, 2020. The regulator found that a group of connected or related entities had taken long positions in ZEEL.
Following the announcement of the results, the entities squared off their long positions and generated huge profits. The company had declared a substantial increase in profits, which resulted in a surge in the scrip by over 13 per cent on August 19, 2020.