PC Jewellers stocks slump as SEBI serves notice to Balram Garg

Source :SIFY
Author :SIFY
Last Updated: Wed, Dec 18th, 2019, 21:39:46hrs
PC Jewellers stocks slump as SEBI serves notice to Balram Garg
New Delhi: Stocks of PC Jewellers traded to a low of Rs 24.50 per share, down by 5.40 percent in the intra-day trading session on the Bombay Stock Exchange on Wednesday.

The 52 week low of the stock ahs been 20.75 while the scrip recorded a high of 31.05.

The negative trend followed after a SEBI notice to the company's Managing Director - Balram Garg.

The market regulator questioned the company over charges of insider trading. It also ordered impounding of illegal gains of Rs 8 crore made by the two promoters and related entities of the jewellery firm.

Notice to the New Delhi based jeweller read, "In light of the alleged violations by Balram Garg, this order shall be treated as a notice calling upon him to show cause as to why direction shall not be passed against him to restrain him from accessing the securities market and prohibiting him from buying, selling or otherwise dealing in securities for an appropriate period."

The order said that a sum of Rs 6.17 crore shall be impounded "jointly and severally", from Shivani Gupta, Sachin Gupta and Amit Garg, being the notional loss avoided on account of trades carried out in the trading accounts of Shivani Gupta, a promoter of the company along with her husband Sachin Gupta.

Sachin Gupta is the son of former Chairman Padam Chand Gupta, who passed away in January this year, while Amit Garg is the nephew of Padam Chand Gupta and Balram Garg.

The SEBI also said that a sum of Rs 2.13 crore shall be impounded jointly and severally, from Quick Developers Pvt Ltd and Amit Garg, being the notional loss avoided and gains made on account of trades carried out in the trading account of Quick Developers Pvt Ltd.

Besides, the order said that banks shall not allow debits from the bank accounts of Shivani and Sachin Gupta and Amit Garg, and Quick Developers Pvt Ltd, to the extent of the amounts impounded until they open escrow accounts, as stated in the order, and the concerned amounts are transferred.

Further, SEBI directed them to provide, within seven days, a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of shares, if held in physical form, and details of companies in which they hold substantial or controlling interest.

During the investigation, the promoters of the company were Balram Garg and Padam Chand Gupta. As Gupta passed away on January 28, SEBI will not be able to initiate proceedings against him for the alleged violations of Insider Trading Regulations, 2015.

SEBI had conducted an investigation in PC Jeweller stocks to ascertain whether or not suspected entities had traded in it during the period April 2-July 31, 2018 on the basis of unpublished price sensitive information, in violation of SEBI's Insider Trading Regulations.

PC Jeweller was incorporated on April 13, 2005, as a private limited company under the name of 'P. Chand Jeweller Pvt Ltd' and was later changed to 'PC Jeweller Pvt Ltd' on December 9, 2009. The Delhi-based company was converted into a public company on August 2, 2011.

*With inputs from agencies

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