In an update on the case of alleged insider trading in the shares of Poonawalla Fincorp Ltd, earlier known as Magma Fincorp Ltd, the Securities and Exchange Board of India (SEBI) on Thursday revoked a securities market ban imposed on six entities.

Saumil Shah, Surabhi Kishore Shah, Amit Agrawal, Murlidhar Bajaranglal Agrawal, Rakesh Rajendra Bhojgadhiya and Rakesh Rajendra Bhojgadhiya HUF are the six entities. 

According to the SEBI order, the six entities had filed the settlement applications under the provisions of SEBI (Settlement proceedings) rules regarding the alleged violation of norms. The regulator revoked the ban following the settlement of cases by the entities.

The terms proposed under the settlement applications were accepted and approved by SEBI. Subsequently, settlement orders were passed regarding the proceedings initiated against the entities vide the show cause notice.

Sebi had passed an ex-parte ad-interim order in September 2021, against certain entities, including the entities, for alleged violation of PIT (Prohibition of Insider Trading) norms and restrained them from the securities markets until further orders.

Subsequently, the regulator passed a confirmatory order confirming the directions issued in the interim order against the entities, with certain modifications.

Based on the findings of a detailed investigation, Sebi issued a common show cause notice in September 2022 against the entities for the alleged violation of PIT regulations.