Atul Kirloskar, Rahul Kirloskar and Nihal Kulkarni in a statement said the Securities Appellate Tribunal vide its order dated October 12, 2022, has set aside an insider trading order passed against them by SEBI on October 20, 2020.
The grounds for the SEBI order was that there was no unpublished price sensitive information (UPSI) and consequently there was no insider trading by them when they sold shares of Kirloskar Brothers Ltd to Kirloskar Industries Ltd in 2010.
“Consequently, the SAT Order exonerates us from the charges of insider trading and fraudulent trade practices levelled against us by SEBI. Further, the SAT Order also dismisses the appeal filed by Kirloskar Brothers Ltd for enhancement of penalties and disgorgement of amounts against us, on the ground that Kirloskar Brothers Ltd is not an aggrieved person by the decision of SEBI, thereby, implying that Kirloskar Brothers Ltd had no locus to file the appeal in the first place,” they said in the statement.