Whistle Blower Mail Hits Hard: Sun Pharma Shares Dip 11 Per Cent As SEBI Reopens Insider Trading CaseSun Pharmaceutical Industries Ltd. (Hemant Mishra/Mint via Getty Images)

Sun Pharmaceutical Industries Limited shares touched a bottom of 11 per cent to Rs 441.95 on BSE, following the decision of SEBI to start a probe on the company based on the whistleblower complaint, as per reports by Financial Express. The firm hit a six-month low and biggest daily loss since May 2017. Today it became top decliner on NSE.

An email was sent by a whistleblower to SEBI alleged that director Dilip Shangvi and brother in law Sudhir Valila were engaged in financial irregularities with Dharmesh Doshi who is a crucial figure from Ketan Parekh scam.

In a mail, to Mint a whistleblower alleged that the financial irregularities involved in issuing of Foreign Convertible Bonds (FCCBs) issued by Sun Pharma during 2002-2007. It is not clear whether the sender of the mail was the same person who complained to SEBI.

The whistleblower claimed that the modus operandi of the accused was to buy a good chunk of shares, preferably through the FCCB route since the investor's face is not visible. Later, they used stock market controllers and investors base to reduce the price of the stocks. The trio have been accused of making unlawful gains of Rs 8,000 crore during the acquisition of Ranbaxy involving such irregularities.

According to the mail, by doing insider trading with his company Silverstreet Developers LLP, Sudhir Valila made a profit of Rs 275 crore by evading taxes. Dharmesh Doshi gained Rs 500 crore in Ranbaxy acquisition by investing in advance before the acquisition.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement