SEBI Confirms Ban On 5 Persons In Zee Entertainment Insider Trading Case

SEBI has confirmed its ban on five persons for insider trading in Zee Entertainment’s scrip

Market Regulator Securities and Exchange Board of India (SEBI) on Monday confirmed its earlier directive passed against five persons wherein they were barred from the securities market for indulging in insider trading in the scrip of Zee Entertainment Enterprises Limited. 

“Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders,” SEBI said in its 43-page confirmatory order.

However, they have been allowed to buy and sell units of mutual funds.

The regulator said a detailed investigation in the matter is in progress which may bring out additional roles of omission or commission, of these five persons, if any, in detail.

The market regulator will pass a separate order after giving an opportunity of hearing to the other entities who are not covered in the interim order but against whom the interim order has been passed.

The latest direction comes after the watchdog, through an interim in August, barred 15 entities, including these five individuals, from the securities markets for indulging in insider trading in the shares of Zee.

The regulator had found that a group of connected or related entities had taken long position in the shares in the cash and derivatives segments.

Following the announcement of first quarter results of FY 2020, the entities had squared off the long positions and generated huge profits.

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