SEBI Orders Disgorging Rs.6.17 Crore From Krishna Shriram Of Mawana Sugars

SEBI Orders Disgorging Rs.6.17 Crore From Krishna Shriram Of Mawana Sugars

The market regulator had probed to observe the possible violations under the Prohibition of Insider Trading Regulations

The Securities and Exchange Board of India (SEBI) has ordered Krishna Shriram, the legal heir of the late Siddharth Shriram, to disgorge Rs.6.17 crore, gained illicitly by insider trading in Mawana Sugars Ltd shares.

The capital market regulator investigated Siddharth’s trading activities from September 2017 to February 2018, when the promoter and special advisor of Mawana Sugars, allegedly possessed unpublished price-sensitive information (UPSI).

The probe was to ascertain the possible violations of market norms and SEBI (Prohibition of Insider Trading) Regulations, 2015.

It observed that after Siddharth passed away in May 2021, his shares were transferred to his son and legal heir Krishna.

In his order, G Ramar, the chief general manager of SEBI stated, "The unlawful loss avoided was Rs.6.17 crore made by Siddharth Shriram by trading in the shares of Mawana Sugars, while in possession of UPSI related to the quarterly results for quarter ending 30 September 2017.”

From the company’s website, SEBI noted the list of the Board of Directors (as of 13 August 2024). It observed that the noticee (Krishna Shriram) was the Chairman of the Board of Mawana Sugars.

Therefore, as Siddharth’s legal heir/representative, Krishna was liable to disgorge the wrongful gains/loss made by trading in the company’s shares.

He has been directed to disgorge the amount within 45 days along with a 12 percent per annum rate of interest to be calculated from 24 November 2017. Failing to do so would mean the interest to be added till the date of actual payment.

SEBI stated that the amount from the noticee would be credited to the Investor Education and Protection Fund. the regulator said in the order.