Founder and CEO of Future Group Kishore Biyani has been barred from the securities market for two years after the Securities and Exchange Board of India (SEBI) found him guilty of insider trading. Further, a penalty of more than Rs. 20 crore has been imposed on Biyani.
SEBI found that Biyani and others traded in shares of Future Retail through another unit using unpublished price sensitive information.
The insider trading is said to have taken place in 2017, when Biyani and others traded in the shares of Future Retail pertaining to the demerger between Future Retail and two other private entities – Bluerock eServices and Praxis Home Retail, causing its share price to rise.
The markets regulator eventually found Kishore, his brother Anil Biyani, and six others guilty of violating Section 12A (d) and (e) of the SEBI Act, which deal with prohibition of manipulative, deceptive devices and insider trading.