For Your Data V.K. Kaul Five Sebi Representative Brief

V.K. Kaul v Sebi illustration brief summary

Mr. Kaul was non-executive independent managing director of Ranbaxy Laboratories. It was decided that Solrex, Ranbaxy’s subsidiary would last making large amounts of investment inwards the scrip of the target company. This conclusion of Solrex to buy shares of the target companionship inwards large quantity was cost sensitive data known alone to the insiders. Mr. Kaul, existence an insider purchased shares of target companionship on behalf of his married adult woman ahead of trading inwards the scrip of target company.

The courtroom held

1. Solrex has purchased a part of the target company.
1. This conclusion is probable to materially deport upon the cost of securities of the target company.
2. Only insiders away nigh it. The conclusion non inwards earth domain.
2. If insiders allowed to merchandise on footing of this information, sure enough it volition last trading on the footing of insider information.
3. The conclusion of Solrex to buy shares of the target companionship is, therefore, UPSI for the insiders of Solrex.
4. Prohibited from dealing inwards the shares of the target companionship till such data becomes public.
5. It is non obligatory that the UPSI must last inwards the possession or noesis of the target companionship inwards whose securities an insider of 'the company' deals. As long as, an insider of 'the company' deals inwards the securities of 'a company' listed on whatever stock telephone substitution spell inwards possession of UPSI relating to that company, the provisions of Regulation 3(i) of the regulations volition larn attracted.

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