- The Securities Appellate Tribunal (SAT) has set aside an order passed by Securities and Exchange Board of India (SEBI) on October 9, 2012, holding Arun Jain, Chairman of Polaris Financial Technology, guilty of insider trading.
- The SEBI order had also banned Mr. Jain from the stock market, and prohibited him from dealing with shares for two years.
- The insider trading case, involving 15,080 Polaris shares dated back to 2000 when Polaris, after due diligence, called off the proposed acquisition of Data Inc of the U.S. in the 2nd week of September, 2000, but had belatedly informed the stock exchanges on September 30, 2000.
- When the company disclosed the above information to the stock exchanges, there was a decline in the price of its shares. From Rs.545 on September 29, to as low as Rs.390 on October 23, 2000.
About Securities Appellate Tribunal (SAT):
- SAT is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.
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