On the basis of these alerts, Sebi conducted a probe and issued an ex-parte order on September 15, 2021 wherein 8 entities, including Bhutada, were restrained from accessing capital markets. The regulator concluded the probe and issued an order on March 28, 2022 confirming the directions issued in September.
While Sebi noted that Abhay Bhutada did not trade in the scrip of the company, he was suspected of passing on insider information about Magma directly/indirectly to third parties.
“Sebi conducted a detailed investigation in the matter to ascertain the violations of securities laws, if any. Pursuant to the investigation, it was found that Abhay Bhutada had not communicated UPSI (unpublished price sensitive information),” the regulator said.