TIL Desk/Business/Mumbai/ A day after the capital market regulator barred brokerage firm Allegro Capital Pvt Ltd and its Chairman from the securities market for one year over insider trading in the shares of Biocon Ltd, the biopharmaceutical major’s Executive Chairperson, Kiran Mazumdar-Shaw on Friday said that SEBI should act “rationally” in terms of judgement in matters of alleged insider trading.
She questioned the basis for relating the Mazumdar Shaw Medical Foundation to Biocon in the judgement. “SEBI bars Allegro Capital, its CEO over insider trading in Biocon shares – Crazy logic. What does MSMF have to do with Biocon? The officer concerned needs to explain her convoluted hypothesis. SEBI needs to act rationally in insider trading judgements,” Shaw said in a tweet.
The SEBI, in its order on Thursday, had said that Allegro Capital Chairman and CEO Kunal Ashok Kashyap, by virtue of his directorship in Mazumdar Shaw Medical Foundation and his majority shareholding in the trading member Allegro Capital which was used by the officers of the company, was allegedly in a position where he was in regular touch with the officers of the company.
