Insider Trading: Sebi gives clean chit to Poonawalla Fincorp’s Bhutada

Mumbai: Market regulator Securities and Exchange of India (Sebi) on Friday exonerated Abhay Bhutada, managing director of Poonawalla Fincorp, from alleged insider trading charges. In February 2021, (now Poonawalla Fincorp) announced that Adar Poonawalla was acquiring control of the company by investing ‘3,456 crore through a preferential issue. At the same time, Sebi‘s internal surveillance systems red-flagged certain transactions in shares that indicated insider trading.

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 Pursuant to the investigation, it was found that Abhay Bhutada had not communicated UPSI (unpublished price sensitive information),” the regulator said.

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