QuantLase Lab LLC former CEO settles insider trading case with Sebi

New Delhi, Sep 17 (PTI) Ajay Bhatia, former MD and CEO of QuantLase Lab LLC, a subsidiary of International Holding Company, has settled a case of alleged insider trading with markets regulator Sebi after paying a settlement amount of Rs 1.05 crore.

Additionally, Bhatia disgorged illegal gains worth Rs 55.34 lakh along with interest of Rs 9.58 lakh. He has also accepted a six-month voluntary ban from the securities market, Sebi said in its settlement order on Tuesday.

The case relates to Adani Green Energy Ltd (AGEL) issuing over 2 crore equity shares to IHC on a preferential basis on April 8, 2022. This information was considered Unpublished Price Sensitive Information (UPSI).

Sebi alleged that Bhatia received UPSI through emails, communicated it to another person, Supreet Singh Luthra, and traded in AGEL, Adani Enterprises (AEL), and Adani Transmission (ATL) while in possession of UPSI.

During April 4-8, 2022, Bhatia bought shares/futures of AGEL, AEL, and ATL, and allegedly made an unlawful gain of Rs 55.34 lakh.

In a separate settlement order, Luthra settled the insider trading allegations against him with Sebi by paying a settlement amount of Rs 40 lakh, along with disgorgement of Rs 13.13 lakh and interest of Rs 2.93 lakh.

"The applicant has also informed of his undertaking to voluntarily restrain himself from the Indian securities market for a period of six months from the date of the settlement order," Sebi said.

Luthra, who was providing VAT consulting services to Bhatia, was in constant contact with him during the UPSI period by way of telephonic calls. He had also allegedly executed trades during the UPSI period and made illegal gains of Rs 13.13 lakh.

After receiving the payments from both persons, Sebi ordered that "any proceedings that may be initiated for the violations...are settled in respect of the applicants".

These orders came after Bhatia and Luthra proposed to settle the case of alleged violations "by neither admitting nor denying the findings of fact and conclusions of law," under the settlement rules. PTI SP SP SHW