The Securities and Exchange Board of India will pronounce after August 28 its final orders on whether to lift ban on stockbroker Samir Arora from trading in securities.
Disclosing this in Bangalore on Saturday, Sebi chairman G N Bajpai said the board's interim order would be in force till then as investigations so far have established that prime facie there was a case of insider trading by the former chief investment officer of Alliance Capital.
| |||||||||||
Asked whether Sebi was considering Arora's application to set up a new asset management company in association with the US-based Sabre Capital, Bajpai told rediff.com that the regulator would not entertain it till the inquiry was completed and he was cleared of the charges.
Though it is not clear yet whether Arora traded in some of the scrips such as Digital GlobalSoft in his personal capacity or on behalf of his mutual fund, Bajpai said Sebi would not like to judge his role and would let the law take its course.
"It will be pre-emptive to judge him now when the inquiry is on. At the same time, we will not spare any individual or entity found violating the guidelines," Bajpai added.
As reported earlier, Sebi debarred Arora from any selling or buying scrips in any manner under the prohibition of insider trading regulations when it was discovered that he disposed off the Digital shares on the basis of unpublished price-sensitive information about the latter's merger ratio with HP.
