Case Law Details
Securities And Exchange Board of India Vs Abhijit Rajan (Supreme Court of India)
Supreme Court held that mere possession of price-sensitive information doesn’t prove that the person was indulged in insider trading. There must be an attempt to take advantage of or encash the benefit of the information so possessed.
Facts-
The respondent was the Chairman and Managing Director of Gammon Infrastructure Projects Limited (GIPL). In 2012, GIPL was awarded a contract by NHAI for the execution of a project worth Rs 1648 crores. Similarly, another company by the name Simplex Infrastructure Limited (SIL) was also awarded a contract by NHAI and the total cost of which was Rs 940 crores.
Two shareholders agreements were brokered between the companies requiring each to invest in the SPV administered by the other, in such a manner that both of them would hold 49% equity interest in each other’s project. However, on 9.08.2013 board of GIPL passed a resolution authorizing termination of both shareholders agreement.
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