New Delhi (India), 2nd April 2023: As a result of an insider dealing case involving shares of Zee Entertainment Enterprises Ltd., the market regulator SEBI has banned three people from the securities market for two years and fined them Rs 90 lakh. (ZEEL).
The punishment must be paid within 45 days by the three people the Securities and Exchange Board of India (SEBI) has banned: Bijal Shah, Gopal Ritolia, and Jatin Chawla.
The regulator stated in its 152-page final decision on March 31 that Ritolia and Chawla have also been ordered to pay back “unlawful gain” totaling Rs 7.52 crore and Rs 2.09 crore, respectively, as well as interest.
The case relates to insider trading activities by specific entities in ZEEL’s stock while in possession of unpublished price-sensitive information (UPSI) about the media company’s audited financial results for the quarter ended June 30, 2020, as well as the company’s September 1, 2020, launch of ZEEPLEX.
Shah, who oversaw investor relations, strategy, financial planning and research at ZEEL at the time, had access to this confidential, price-sensitive information.
Shah has played a major part in disclosing the unpublished, price-sensitive information to Ritolia and Chawla, which has led to the breach of insider trading rules, but the regulator claims that he is not liable for insider trading.
