Whistle Blower Mail Hits Hard: Sun Pharma Shares Dip 11 Per Cent As SEBI Reopens Insider Trading Case

Sun Pharmaceutical Industries Limited shares touched a bottom of 11 per cent to Rs 441.95 on BSE, following the decision of SEBI to start a probe on the company based on the whistleblower complaint, as per reports by Financial Express. The firm hit a six-month low and biggest daily loss since May 2017. Today it became top decliner on NSE.

An email was sent by a whistleblower to SEBI alleged that director Dilip Shangvi and brother in law Sudhir Valila were engaged in financial irregularities with Dharmesh Doshi who is a crucial figure from Ketan Parekh scam.

In a mail, to Mint a whistleblower alleged that the financial irregularities involved in issuing of Foreign Convertible Bonds (FCCBs) issued by Sun Pharma during 2002-2007. It is not clear whether the sender of the mail was the same person who complained to SEBI.

The whistleblower claimed that the modus operandi of the accused was to buy a good chunk of shares, preferably through the FCCB route since the investor's face is not visible. Later, they used stock market controllers and investors base to reduce the price of the stocks. The trio have been accused of making unlawful gains of Rs 8,000 crore during the acquisition of Ranbaxy involving such irregularities.

According to the mail, by doing insider trading with his company Silverstreet Developers LLP, Sudhir Valila made a profit of Rs 275 crore by evading taxes. Dharmesh Doshi gained Rs 500 crore in Ranbaxy acquisition by investing in advance before the acquisition.