Home Business Future group stocks hit lower circuit after Sebi bans Kishore Biyani and other promoters from capital markets

Future group stocks hit lower circuit after Sebi bans Kishore Biyani and other promoters from capital markets

Financial Express - Business News, Stock Market News

Current development of Sebi announcing a one year ban on Kishore Biyani in securities market along with the legal tangle they find themselves in with Amazon has led to a breakdown in the faith of investors Image: Reuters

Most of the Future group shares have hit their respective lower circuits on Thursday, after the capital market regulator Sebi banned Kishore Biyani, along with certain other promoters of Future Retail Ltd from the capital market for one year for indulging in insider trading in the shares of the company. Future Consumer Ltd shares hit 5 per cent lower circuit at Rs 7.80, Future Enterprises Ltd at Rs 11.15 apiece, Future Market Networks Ltd at Rs 19.95 apiece, Future Lifestyle Fashions Ltd at Rs 83.95 apiece, Future Retail at Rs 74.20 apiece and Future Supply Chain Solutions Ltd at Rs 95.15 apiece.

AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online that the current development of Sebi announcing a one year ban on Kishore Biyani in securities market along with the legal tangle they find themselves in with Amazon has led to a breakdown in the faith of investors leading to a sharp sell-off in the Future group stocks. “Investors are best advised to look for every opportunity to exit these stocks and invest in better and more stable retail stocks like Avenue Supermarts (DMart) and V-Mart Retail Ltd for better returns,” Ramachandran said.

Sebi has also imposed a fine of Rs 1 crore each on Kishore Biyani, Anil Biyani and Future Corporate Resources. Apart from this, they have been asked to disgorge Rs 17.78 crore for the wrongful gains made by them. In comparison, BSE Sensex was trading 117 points or 0.23 per cent up at 50,373, while the Nifty 50 index was trading 45 points or 0.30 per cent at 14,835.

Moreover, Future Corporate Resources and FCRL Employee Welfare Trust have been directed to disgorge Rs 2.75 crore for the wrongful gains made by it. Anil Biyani and Future Corporate Resources are promoters of Future Retail Ltd. The market regulator had also conducted an investigation in the shares of Future Retail Ltd 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.



This article is auto-generated by Algorithm Source: www.financialexpress.com

Related Posts

0

Ad Blocker Detected!

Refresh