SEBI Slaps fine on MD of Acclaim Industries in Insider Trading

Securities Exchange Board of India slaps fine of Rs. 42 lacs on Abhishek Mehta who was the Managing Director and promoter of Acclaim Industries in 2012. In an order, the regulator said it conducted a probe from January to December 2012 regarding the change in the shareholding of Mehta after the company’s board principally approved the proposal of merger of the firm with Database Software Technology Pvt Ltd (DSTPL) in January 2012

The merger was cancelled in February, however the company did not inform the exchange about this cancellation. Inspite of having the sensitive information about the cancellation of merger, Managing Director went ahead and informed the stock exchanges in the month of August about the meeting to fix the swap ratio.

In the mean time he went on reducing his shareholding at the higher prices. Abhishek Mehta resigned from the company in 2014. This is classic case of how the Company promoters of listed companies use the Unpublished Sensitive information in their favor. Now not associated with any company, Rajesh Mehta was found to be associated with certain companies in Past.

CompanyDesignationAppointment DateCessation Date
RAMMAICA INDIA LIMITEDAdditional Director30 June 201116 March 2013
GAGANN POLYPLAST LIMITEDDirector16 December 200815 March 2013
ANERI INDUSTRIES LIMITEDDirector11 December 200815 March 2013
KIL INFRASTRUCTURES LIMITEDDirector02 November 201029 June 2016
TIEN TRADING PRIVATE LIMITEDDirector06 February 201016 March 2013
ZELTZIN TRADING PRIVATE LIMITEDDirector06 February 201016 March 2013
ABHI-MAN TELE-COM LIMITEDDirector01 June 200006 May 2008
VRB CAPITAL SERVICES INDIA PRIVATELIMITEDAdditional Director23 March 201115 March 2013
KYNER INFOTECH VENTURES PRIVATE LIMITEDDirector06 February 201016 March 2013