Poonawalla Fincorp hits lower circuit after MD Abhay Bhutada steps down
Published On: Friday, September 17, 2021 | By: Team KnowMyStock
Shares of Poonawalla Fincorp Ltd were locked in the lower circuit for the second straight day, down 5 per cent at Rs 163.55 on the BSE on Friday, after resignation of Abhay Bhutada, managing director (MD) of the company. Abhay Bhutada resigned with immediate effect from 16th September 2021 from the non-banking finance company (NBFC) a day after the Securities and Exchange Board of India (Sebi) barred him from dealing in securities for allegedly using price sensitive information in trading in the shares of Magma Fincorp before it was acquired by the Poonawalla Group.Seven people, apart from Bhutada, have been barred from trading and their bank accounts have been impounded to the tune of Rs 13.8 crore. In its 46-page interim order, Sebi noted that in February 2021 its surveillance system generated insider trading alerts related to Magma Fincorp’s shares. Sebi had also ordered impounding of the bank accounts of these eight entities.
Bhutada has denied the allegations and claims that he has not received any financial benefit from the deal or entities mentioned in the transactions. “I have not shared any unpublished price sensitive information (UPSI) directly or indirectly to the entities mentioned in the order except the official discussion with entity no 2 who was working as an advisor for the acquisition transaction. I have not received any kind of financial benefit directly or indirectly from the entities mentioned in the order,” he said. He added that he will seek legal recourse.
Tags: Fincorp Abhay Bhutada Sebi banned
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