Market regulator SEBI is probing the alleged role of Ashwin Dani, a former board member of Sun Pharmaceuticals Industries Ltd (SPIL), in an insider trading case. The probe relates to trading in the shares of Ranbaxy Laboratories between 2013 and 2015, when talks of a merger deal were on between Sun Pharma and Daiichi Sankyo, the Japanese owner of Ranbaxy.
Dani's wife, Ina, is a partner and board member of Rangmeet Investments. The company's other partner and board member, Ramesh Chimanlal Shah, was summoned by SEBI for trading in Ranbaxy shares, documents with BusinessLine show.
Final stage of probe
Later, examination of Shah-linked entities revealed to SEBI that he could be a related party to Dani. Now, SEBI is in the final stage of the probe of the dealings in Ranbaxy shares by Shah, Rangmeet, and his links to the Dani family.
SEBI is probing if Ashwin passed on the information regarding the deal talks between Sun and Daiichi. Sources close to the development said SEBI is expected to take a decision on his alleged involvement soon and a showcause notice will be issued if it finds any material evidence.
When contacted, Dani said he would not like to answer any questions. He did not respond to queries by email and WhatsApp messages. Dani was the additional independent non-executive director of Sun Pharma between 2004 and 2018. Currently, Dani is the non-executive chairman of Asian Paints.
Sun Pharma, in its response said, “Sun Pharma has not received any information or notice from SEBI or anyone in this regard. The company has never even been drawn into an enquiry or investigation in the said matter. Sun Pharma has strict practices and procedures in place to ensure compliance with SEBI’s listing obligations & disclosure requirements.”
Showcause notice issued
In a related matter involving insider trading in Ranbaxy shares, SEBI had earlier issued a showcause notice to an executive of Sun Pharma Laboratories, a wholly owned subsidiary of Sun Pharma.
The executive and his wife settled the case with SEBI by paying ₹70 lakh.