The Securities and Exchange Board of India (SEBI) said the two brothers traded in shares of Future Retail through a group company on the basis of unpublished price sensitive information before a demerger of certain businesses of Future Retail that pushed its share price higher.
A spokesman for Future and the two Biyani brothers did not immediately respond to a request for comment.
The SEBI investigation found that the Biyanis opened a trading account for an entity named Future Corporate Resources Private Limited, which traded in Future Retail’s shares before the demerger decision was made public.
SEBI also barred Biyani from trading in Future Retail shares for 2 years. Future Corporate Resources and the two Biyani brothers will each need need to pay a penalty of 10 million rupees ($137,099) within 45 days, SEBI said.
Kishore Biyani is separately fighting a legal challenge from Amazon.com Inc over the sale of Future’s retail assets.
A court in New Delhi blocked Future Group’s sale of retail assets to Reliance Industries on Tuesday. Future has said its retail unit faces insolvency if the deal fails.
