SEBI keeps convicting Arun Jain of Polaris of Insider trading but what is the use !

SEBI keeps convicting Arun Jain of Polaris of Insider trading but what is the use !

For a 2000 Insider Trading Matter,SEBI had passed an October 9,2012 Order barring Arun Jain from Capital markets for Two years only to see SAT set aside this order on December 23,2013

Now on November 24,2015 SEBI has again indicted Arun Jain for Insider Trading in 2008 and levied a Penalty of under Rs 2 crs on on him !  

What’s the use !.. for two clear reasons….justice delayed is justice denied …. & he may appeal this too!

Arun Jain keeps moving on in life !

In 2014  he demerged Polaris’ Products division to Intellect Design Arena which listed last year in December 2014 at Rs 50 to Rs 60 levels and in a lack lustre 2015 has raced away  six times to Rs 300 + earlier this week and closed at Rs 284 today

In 2015 recently he,along with a few other shareholders sold their 53% stake in Polaris for Rs 1173 crs to US based Virtusa Corporation    in what he has described as the most important decision he has made in his life

Who will continue having the last laugh !…..your guess would be right !

4 thoughts on “SEBI keeps convicting Arun Jain of Polaris of Insider trading but what is the use !

  1. Hi Gaurav,

    Curious – are you implying that this order has no ground, or is this a comment on the toothless regulator 🙂

    The order seems very clear in what the violations were – so if you were a shareholder, what would you do? Thanks!

    1. Hey Merchant ! I’m just saying what’s the point in such a time consuming investigation process….akin to bolting stable doors after horses have bolted and even multiplied !…imagine a 2000 Insider Case culminating into an Order twelve years later in 2012 ! and then SAT staying the Order in December 2013 !…this new Order is for another new 2008 Insider case !

      SEBI must put up on it’s website all companies being Investigated and the nature of the investigation.This will serve Investor Interests more than you can imagine enabling them to manage risks better as being better informed….I have repeatedly conveyed this to SEBI

      As for Intellect ~ use your Intellect ! 🙂

      A common maxim is ‘When in Doubt Stay Out !’….there are other boats you can board !

      Cheers, Gaurav

  2. Hi Gaurav,

    Touche! I like the point about stable doors being bolted after the horses have bolted (and multiplied). Sums up the situation perfectly.

    In addition to companies that are being investigated, maybe its also time to develop stronger laws against insider trading, and enforce them. The Rajat Gupta / Galleon episode certainly shows us a model.

    I’ll disclose I’ve been tracking Intellect for a long time, regretted missing that boat. I may continue to regret but time will tell.

    Your blog certainly gives ideas – though I don’t necessarily agree with all your points – but thank you for the good work! I hope that SEBI listens to you and others that are atleast looking out for minority shareholders. If there is a way we can also engage SEBI, I hope you post it on the blog!

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