SEBI has stated in its order that Biocon had declared information relating to its partnership with Sandoz and the period of unpublished price sensitive information was from December 20, 2017 to January 18, 2018.
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Tambe was aware of this partnership and had traded in the company’s shares between December 19-27, 2017, which is in violation of the rules.
Apart from this, Tambe had also failed to give disclosure within the stipulated period to Biocon regarding the trade related to the sale of shares on December 19 and 20, 2017.
As per the rules preventing insider trading, Tambe was required to make disclosures within two trading days of the sale of shares but did not do so.
In the investigation, it was found that Tambe had stated that he did not have price sensitive information on his application for prior clearance for trading from the compliance officer.
Even before this, SEBI has taken action against the executives of many companies for violating the rules related to insider trading.