Future Group stocks tank as SEBI bans Kishore Biyani from securities market
Future Retail plunged 4.99% to Rs 74.20 in the early trade, while Future Enterprises and Future Lifestyle Fashions also tanked 4.94% and 4.48% to Rs 11.15 and Rs 83.95, respectively.
Shares of Future Group of companies hit lower circuit on Thursday after the market regulator SEBI on Wednesday barred Kishore Biyani and certain other promoters of Future Retail Ltd from the securities market for one year for indulging in insider trading in the shares of the company.
Future Retail plunged 4.99% to Rs 74.20 in the early trade, while Future Enterprises and Future Lifestyle Fashions also tanked 4.94% and 4.48% to Rs 11.15 and Rs 83.95, respectively.
On the other hand, Future Consumer declined 4.51% to Rs 7.84, while the benchmark BSE Sensex traded 0.33% to 50,091 at around 10.28 am (IST).
Apart from Kishore Biyani, who was the CMD and promoter of Future Retail Ltd (FRL), others facing ban are Future Corporate Resources Pvt Ltd, Anil Biyani and FCRL Employee Welfare Trust.
In addition, the regulator has imposed a fine of Rs 1 crore each on Kishore Biyani, Anil Biyani and Future Corporate Resources. Besides, they have been asked to disgorge Rs 17.78 crore for the wrongful gains made by them.
Further, Future Corporate Resources and FCRL Employee Welfare Trust have been directed to disgorge Rs 2.75 crore for the wrongful gains made by it.
According to reports, Sebi had conducted an investigation in the scrip of FRL to ascertain whether certain persons and entities had traded during March 10, 2017, to April 20, 2017 period on the basis of Unpublished Price Sensitive Information (UPSI) pertaining to segregation of certain business of the firm.
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