The Securities and Exchange Board of India (SEBI) on Tuesday banned Arun Jain, chairman and managing director of Chennai-based Polaris Software Lab, from the securities market for two years for alleged insider trading.
The regulator said in a statement said that it had conducted investigations into a dealing based on media reports.
“The company had, after due diligence, called off the proposed acquisition of Data Inc, USA in the second week of September, 2000 but had belatedly informed the concerned stock exchanges on September 30, 2000. During the investigations, it was observed that the company had deliberately withheld this price-sensitive information from the public,” it said.
Denying wrongdoing, Jain said the case had been settled in 2008 but was surprisingly reopened in 2011. He plans to challenge the order in the Securities Apellate Tribunal.