Piramal Enterprises shares slipped over 1.5 per cent intraday on Tuesday after the market regulator Securities and Exchange Board of India (Sebi) slapped Rs 6 lakh fine on the company and five of its executives including chairman Ajay Piramal as well as his wife Swati and daughter Nandini for lapses on insider trading control in connection with the sale of domestic healthcare business to Abbott. According to Sebi, the company and its executives violated some of country’s insider trading rules during the sale in 2010 of its domestic healthcare business to Abbott Laboratories.
At 12.09 pm, shares of Piramal Enterprises were trading 1.07 per cent down at Rs 1885. The scrip opened the day at Rs 1895.10 and has touched a high and low of Rs 1901.95 and Rs 1876.35, respectively, in trade so far. Benchmark BSE Sensex was trading 45.88 points up at 28,289.17.
Sebi further added that that entities failed to handle the ‘Unpublished Price Sensitive Information’ relating to the sale of domestic healthcare formulation business to Abbott on a ‘need to know’ basis as Anand Piramal, son of Ajay Piramal, who is neither employee nor Director was privy to the decision at every stage and therefore violated the regulations.
In the past one year, shares of the company have risen 108 per cent to Rs 1905.35 till October 3, whereas BSE Sensex jumped 5.44 per cent during the same period.