SEBI imposes fine on Piramal Enterprises for insider trading norm violation

Securities and Exchange Board of India (SEBI) has imposed Rs 6 lakh fine on Piramal Enterprises and five of its senior officials, including Ajay and Swati Piramal, for violating insider trading rules. This was with regard to the $3.72 billion sale of the company’s domestic healthcare business to Abbott Laboratories in May 2010.  SEBI during its probe found that entities failed to handle the Unpublished Price Sensitive Information of the above transaction on a ‘need to know’ basis as Anand Piramal, who was neither an employee nor a director, was privy to the decision at every stage and thus violated the SEBI norms.

Piramal Enterprises (PEL) is engaged in the business of pharmaceuticals, including research and development, financial services and information management through its subsidiaries.