Markets

Varun Beverages’ Jaipuria settles case with Sebi after paying Rs 56 lakh


Chairman Ravi Kant Jaipuria has settled with capital markets regulator a case related to alleged violations of rules after paying nearly Rs 56 lakh towards settlement charges.

It was alleged that Jaipuria had communicated unpublished price-sensitive information (UPSI) relating to a strategic partnership between Ltd (VBL) and PepsiCo for selling and distribution of the larger Tropicana to two persons. Based on the information, shares of Varun Beverages, PepsiCo India’s bottling partner, were traded.

The latest order came after Jaipuria approached to settle the proceedings initiated against him for the alleged violation “without admitting or denying the finding”.

“This settlement order disposes of the aforesaid adjudication proceedings initiated against the applicant viz. Ravi Kant Jaipuria vide SCN… dated December 21, 2021,” said in its order passed on Tuesday.

In its order, the regulator observed that two entities — Spank Management Services and Fenton Investment — traded in the scrip of VBL during the UPSI period from December 21, 2017, to January 4, 2018. Both of these entities through their directors or owners were connected to Lemon Tree Hotels Ltd in which Jaipuria was also a director.

As per the annual report of Lemon Tree Hotels for the FY2017-18, it was observed that Patanjali Govind Keswani was the chairman and managing director of Lemon Tree Hotels. Further, Jaipuria was the director and Arvind Singhania was an independent director in Lemon Tree Hotels. On analyzing the annual return for the year 2016-17 filled by the Spank at MCA, it was observed that Lemon Tree Hotels was one of the associate of Spank.

Further, Jaipuria, Keswani and Singhania were known to each other personally. Jaipuria and Keswani — during the period December 27, 2017, to January 2, 2018 — were staying in the same hotel in Bangkok. During the same period, Singhania was also staying in Bangkok in a hotel which was nearby.

It was noted that Fenton (Singhania) and Spank (Keswani) had placed an order to buy shares of VBL and sold all these shares immediately after an announcement related to the strategic partnership was made public.

The orders were placed by Fenton (Singhania) and Spank (Keswani) on December 28, 2017, and January 2, 2018, respectively, when all three of them were in Bangkok and Jaipuria was in possession of the UPSI. It was therefore alleged that Jaipuria, being an Insider and in possession of UPSI, communicated UPSI to Singhania (Fenton) and Keswani (Spank), and violated rules.

In this regard, a show-cause notice (SCN) was issued to Jaipuria in December 2021.

Following this, Sebi recommended that the adjudication proceedings initiated against the applicants may be settled on payment of Rs 55.90 lakh towards the settlement amount and consequently, Jaipuria remitted the amount and settled the case with the capital markets regulator.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button