Market regulator Securities and Exchange Board of India (SEBI) has charged A. Vellayan, Chairman of the Chennai-based Murugappa Group, and three others with insider trading.
The SEBI has alleged that Mr. Vellayan had passed on "unpublished price-sensitive information pertaining to the acquisition of Sabero Organic Gujarat Ltd. by Coromandel International, a group company, to some individuals who traded in the shares of Sabero on the basis of that information."
And, it has ordered Mr. Vellayan and the rest to surrender the unlawful gains with interest.
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It has also named V. Karuppiah, C. Gopalakrishnan and A.R. Murugappan as other suspects in the insider trading case.
The regulator said it would initiate further action in the case after the completion of the investigation.
SEBI examined the events of the period between May 15, 2011 and June 15, 2011 based on complaints.
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