SEBI orders a ban on 15 entities in ZEEL insider trading case, confiscates Rs 24 crore

The regulator also ordered to confiscate of ill-gotten gains to the tune of rupees 23.84 crore from certain entities

The Securities and Exchange Board of India (SEBI) bans 15 entities also including individuals from the capital markets on Thursday for indulging in insider trading in the scrip of Zee Entertainment Enterprises Ltd (ZEEL). The SEBI had also ordered to confiscate of ill-gotten gains to the tune of rupees 23.84 crore from certain entities.
 
The entities that are barred by SEBI are — Bijal Shah, Jatin Chawla, Gopal Ritolia, Amit Bhanwarlal Jajoo, Manish Kumar Jajoo, Gomati Devi Ritolia, Daljit Gurucharan Chawla, Monika Lakhotia, Pushpadevi Jajoo, Bhawarlal Ramniwas Jajoo, Ritesh Kumar, Vimla Somani, Yash Anil Jajoo, Successure Partners, Bhawarlal Jajoo HUF and Kamalkishore Jajoo.
 
The Director Madhabi Puri Buch had issued the order, that comes after the surveillance alert system at SEBI detected suspicious trading patterns in the scrip of ZEE Ltd about the declaration of the financial results for Q1 FY20 that were announced post-trading hours on August 18, 2020.
 
SEBI had founded that a group of related entities that had taken long positions in ZEEL. Following the announcement of the results, the entities squared off their long positions and generated huge revenue. The ZEEL had also declared a significant increase in their net profits that resulted in a rise in the scrip by more than 13 percent on August 19, 2020.

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