Securities and Exchange Board of India has launched a full-fledged probe into the trading in Global Trust Bank stock, including alleged insider-trading prior to it being placed under moratorium and announcement of merger.
Asked about regulatory action on the unusual trading in bank stock around and after moratorium, Sebi chairman G N Bajpai told reporters in Mumbai: "We have been keeping close watch and called for trading data as part of investigations".
The Global Trust Bank Crisis: Complete Coverage
He, however, did not place any time limit for completing the probe.
On government seeking clarification from Sebi on insider trading in GTB, he said the regulator has not received any written communication from the government on the issue.
The government had placed the ailing private sector bank under three-month moratorium on July 24 and later initiated its merger with Oriented Bank of Commerce.
All the information about order on lifting ban on certain entities to trade in GTB stock was disseminated through the Bombay Stock Exchange, he said.
Earlier, inaugurating the electronic issuer interface facility at National Stock Exchange, Bajpai said exchange trading platform was appropriate mechanism for instant dissemination of information to stakeholders and investors.
The corporate executives have responsibility to manage wealth properly and distribute among stakeholders, he said.
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