Management: Pipavav shipyard found for insider trading

These things will never end

Interesting article in Economic times of three employees of Pipapvav shipyard of insider trading— Hemant R Patil, Praveen Mohnot and N Ravichandran — were allegedly involved in using “unpublished price sensitive information at the time of acquisition of KLG Capital, which is tantamount as insider trading”. On Thursday, Sebi told the company to issue an advertisement and to provide a 10-day window, from the date of the advertisement, for investors to withdraw. The company then quickly approached SAT, a quasi judicial body to which companies and market players can appeal to against orders and directives issued by Sebi. On Friday, SAT directed the counsel of Sebi to ensure that the regulator does not take any further steps to implement the directions in its letter to the lead manager on the public offering, said three people with knowledge of these developments. Further, the company was allowed to go ahead with the allotment process as scheduled.