Zee Entertainment is finally moving forward for a merger with another giant Sony in India, after battling an order for its insolvency in the NCLAT. But the firm's employee faces action for using sensitive information to get undue advantage on the stock market.
The former head of financial planning at Zee Entertainment Bijal Shah, has been found guilty of involvement in insider trading along with Gopal Ritolia and Jatin Chawla.
Knew about Zee Plex beforehand
Using confidential data about the launch of Zee Plex among other developments, Shah enabled Ritolia and Chawla to invest in Zee and make Rs 7.52 crore and Rs 2.09 crore in profits.
Now they have been fined Rs 90 lakh collectively and banned from trading on the stock market for two years.
Apart from paying the hefty penalty in 45 days, Ritolia and Chawla will also have to pay back the illegally made gains with interest.
Shah not liable for insider trading?
The Securities and Exchange Board also ruled that while Shah was guilty of passing on unpublished information to the other two to help them profit, he wasn't liable for insider trading himself.
They pulled it off in 2020 using data about the earnings for the quarter ending in June and the launch of an online movie streaming service.
