The matter relates to 2011, when Krishnan was the Vice President of DSP Merrill Lynch (DSPML), which acted as adviser to Aban Loyd Chiles Offshore in the acquisition of Hitech Drilling Services India Ltd. He was, however, not part of the Mergers & Acquisition team, which was responsible for the deal of acquisition of Hitech Drilling by Aban.
The Sebi (Securities and Exchange Board of India) had conducted probe into the affairs relating to the acquisition of Hitech Drilling Services by Aban and in respect of the trading in the shares of the company between March 12, 2001 and April 6, 2001.
The market regulator alleged that Krishnan gave a loan to Paresh Thakkar, a former employee of DSPML, to trade in the shares of Hitech Drilling Services, while in possession of price sensitive information related to the acquisition.
It was also alleged that Krishnan had a profit sharing agreement with Thakkar, hence, violating norms on Prohibition of Fraudulent and Unfair Trade Practices relating to
Sebi, in its order dated May 30, noted Krishnan had given a loan of Rs 7.50 lakh to Thakkar in March 2011. Prior to Krishnan lending money, Thakkar had already bought shares and then approached him to lend him an amount of Rs 7-8 lakh in
order to take delivery of shares of the company purchased based on market rumours.
The money was returned back to him in June 2001.
"There is no charge on the noticee (Krishnan)to deal in shares of the company while in possession of any unpublished price sensitive information or communicating the same or that he was connected with Thakkar," Sebi said.
"There is no material to show that noticee facilitated, aided or abetted their dealings in the shares of the company during the relevant time, it added.
The regulator is satisfied that the loan given by him to Thakkar was not part of any device, scheme or artifice to defraud any person or to fraudulently deal in securities.
Consequently, Sebi "disposed of" the case against Krishnan.