Biocon Chief Kiran Mazumdar Shaw has tweeted her displeasure about a SEBI judgement on Allegro Capital.
In its judgement, SEBI barred Allegro Capital and its MD and CEO, Kunal Kashyap, from participating in Indian security markets for one year over insider trading in the probe over Biocon's scrip movement in 2018.
Taking to Twitter, Shaw tweeted, "What does MSMF (Mazumdar Shaw Medical Foundation) have to do with Biocon? The officer concerned needs to explain her convoluted hypothesis. SEBI needs to act rationally in insider trading judgements..."
When a Twitter user added screenshots to point towards the relationship, Shaw replied that Mazumdar Shaw Medical Foundation had zero links to Biocon.
Mazumdar Shaw Medical Foundation is a part of Narayana Health - is this a related party? Come on I think it’s irrational. It has zero link to Biocon ok?— Kiran Mazumdar-Shaw (@kiranshaw) July 9, 2021
In the case involving Allegro Capital, the markets regulator asked the entity to disgorge wrongful gains estimated at Rs 24.68 lakhs plus 12 percent interest from Jan 2018 till date of payment. Kashyap and the firm have each been slapped with a fine of Rs 10 lakhs.
The case pertains to Jan 12, 2018 when Biocon announced an exclusive global collaboration with Sandoz. Next day, shares rose by 5.6 percent and the regulator initiated a probe to rule out insider trades.
The SEBI order says that Allegro Capital was in a temporary business relationship with Biocon and that Kashyap also held directorships in Mazumdar Shaw Medical Foundation. Kashyap is alleged as having had frequent communication with Biocon officers.
The markets regulator two years ago had asked Shaw to pay a fine of Rs 9.5 lakhs after a Portfolio manager sold executed a trade on shares of Infosys without obtaining preclearance for trade. Shaw is also an independent director on the board of Infosys. The SEBI committee probe found that the trade was not made with an intent to gain or violate trading rules. Shaw was asked to pay the fine to a charity of her choice.