HYDERABAD:
Aurobindo Pharma
on Thursday informed the bourses that the company, along with its promoters and other entities, have settled an
insider trading
case with markets regulator Sebi by paying over Rs 22 crore as settlement charges.
Last year, Aurobindo Pharma, its promoter P V Ramprasad Reddy, his wife P Suneela Rani, and three other entities — Kambam P Reddy, Trident Chemphar Ltd and
Veritaz Health Care
Ltd — were slapped with a fine of Rs 22.7 crore by Sebi. The penalty was for charges of engaging in insider
trading
between July 2008 and March 2009.
Aurobindo Pharma said, while it paid a Rs 2.2-crore settlement amount and Rs 60,000 as legal costs, the promoters
cumulatively
paid a settlement amount of Rs 19.8 crore and Rs 60,000 each as legal costs. This includes Rs 6.6 crore paid by Ramprasad Reddy, Rs 2.6 crore by Suneela Rani, Rs 34.6 lakh by Kambam P Reddy, Rs 7.9 crore by Trident Chemphar and Rs 2.3 crore by Veritaz Health Care. All of them also had to cough up an additional Rs 60,000 each towards legal costs as part of the settlement proceedings.
In its settlement order, Sebi said: “…It is hereby ordered that the pending enforcement proceedings for the alleged defaults…are settled…” The order also said with the disposal of enforcement proceedings Sebi would not initiate enforcement action against the company and others for the said defaults.
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