The Sun Pharma-Ranbaxy deal is being looked into from the insider-trading angle, SEBI sources said.

Data on recent trading patterns in the Ranbaxy scrip have been sought from the exchanges. Sources at both the National Stock Exchange and the BSE have confirmed this. The deal is facing allegations of insider trading, especially relating to Silverstreet Developers LLP, in which Sudhir Valia, Executive Director of Sun Pharma, was apparently a partner.

Silverstreet had picked up 1.41 per cent in Ranbaxy (59,67,542 shares) during the December quarter of FY14 and its shareholding increased to 1.64 per cent during the March quarter (69,67,542 shares), according to exchange data.

Sun Pharma reaction Defending Sun’s action, Sun Pharma Chairman Israel Makov told Business Line: “This investment was made by the subsidiary before we entered any meaningful negotiation with Daiichi, before Daiichi had agreed to sell …before we (had) seen any confidential information … so how can it be insider trading.”

“There was no insider trading, that’s for sure,” said Makov, responding to questions on the spike that Ranbaxy shares had seen, just days before the deal was made public.

A Sun Pharma statement on Wednesday said: “the purchase of shares of Ranbaxy Laboratories Ltd by Silverstreet Developers LLP does not violate Insider Trading Rules. Sudhir Valia is not and was not a partner of Silverstreet Developers LLP when the purchase of shares of Ranbaxy Laboratories Ltd was effected by the LLP.

“Silverstreet Developers LLP has two partners. Both are 100 per cent subsidiaries of Sun Pharma. Hence, all the benefits flowing from the investment in Ranbaxy shall accrue to Sun Pharma.”

Broker associations ANMI (Association of National Exchange Members of India) and BSE Brokers Forum have said that they would consider making a representation to SEBI on the issue.

Alok Churiwala, Vice-Chairman, BSE Brokers Forum, said: “As of now, we have not issued any advisory to our members, sought information from them or made a representation to SEBI. In case members approach us, we will definitely consider making a representation.”

Naresh Tejwani, President, ANMI, said: “We are concerned and will take it up based on member feedback. We have neither issued any directive/circular to our members nor complained to SEBI on this issue.”

>jyothi.datta@thehindu.co.in