'Chairman Vellayan vindicated'

The Murugappa Group has said that its executive chairman has been vindicated in the alleged insider trading case by SEBI.

“The Murugappa group executive Chairman A Vellayan has been vindicated, with the SEBI finding that it never had a fair and reasonable basis to conclude that he was the source of information for alleged insider trading in shares of Sabero Organics Gujarat,” the group said. Vellayan had stepped aside from chairmanship of the group until an internal review.

 looked into the allegations of SEBI last year, which had been made without a hearing, and on a prima facie basis. Now that the regulator has come to a view that it is not just or reasonable to conclude that Vellayan had been a communicator of information about taking over Sabero, he stands vindicated, the group added.

In an order on Thursday, SEBI whole time member S Raman directed SEBI to re–investigate the matter of the alleged insider trading in the scrip of Sabero. Last year, the regulator had passed an ex parte order on the basis of prima facie suspicion about purchases of Sabero shares by some persons ahead of the announcement only to sell the shares right after the announcement.