Sebi’s order pertained to a case of alleged insider trading by Biyanis — Kishore and brother Anil — between March and April 2017. Sebi said that Biyani along with some other parties, were involved in disgorging an amount of Rs 17.78 crore. In its investigation, Sebi found that the Biyanis opened a trading account for an entity named Future Corporate Resources. This entity traded in Future Retail’s shares on the basis of unpublished price sensitive information before the demerger decision of certain businesses of the company was made public.
Post the Sebi order, Future Corporate Resources, Kishore and Anil Biyani have filed an appeal with SAT seeking an urgent stay. “The appellants are seeking a stay on the operation and enforcement of the implunged order, failing which irreparable harm may be caused to the appellants,” the petition stated.
Although full details of Biyani’s petition are yet to be known, Future Corporate Resources had said in a statement on February 3 that, “On merits, the Sebi order is untenable since it treats a well-anticipated and publicly well-known impending reorganisation of the home furnishing businesses that the Future Group effected in 2017 to be unpublished information.”
Sebi has barred both Biyani brothers and FCRL from buying, selling or dealing in the shares of FRL directly or indirectly for two years and imposed a penalty of Rs 1 crore on each one of them. The regulator has also directed the three to disgorge Rs 17.78 crore along with 12% interest.
