The Securities and Exchange Board of India (Sebi) has absolved Udit Todi, executive director of Lux Industries, from alleged insider trading charges.
The market regulator also revoked a May 2022 order which had barred Todi and 13 others from buying, selling or dealing in securities of Lux Industries and an interim order wherein the 14 entities were restrained from accessing the capital markets.
The market regulator has come to the conclusion that the alleged insider trading charges cannot be sustained.
Its eight-page order said that no other material was found during the investigation that could establish the communication of UPSI (unpublished price sensitive information) directly or indirectly from Todi to Mohammed Mujtaba Ali Khan (Mujtaba was connected to Indi Stock Pvt Ltd) and from Mujtaba to any of the remaining entities.
“The flow of communication of UPSI could not be established on account of lack of evidence. In the absence of cogent evidence available on record to show as to how the UPSI was communicated, the charges levelled cannot be sustained,’’ Amarjeet Singh, wholetime member of Sebi, said in the order delivered on Monday.
Sebi said its probe began when it received system generated insider trading alerts in the shares of Lux Industries in May 2021, when the company had announced its audited financial results for the quarter and financial year ended March 31, 2021.
Following this, it had initiated a preliminary examination into the trading in Lux shares to ascertain as to whether certain persons or entities traded in the counter while being in possession of or on the basis of an UPSI.