The Securities Appellate Tribunal (SAT) has set aside charges of insider trading against Dilip Pendse, former managing director of Tata Finance, and his wife Anuradha Pendse and Nalini Properties. “The charges of insider trading against Dilip Pendse, his wife Anuradha Pendse and Nalini Properties, a company controlled by Anuradha’s family, have been set aside by SAT,” Dilip Pendse’s advocate V M Singh said.
The restriction which prevented Dilip Pendse from trading in the market has been set aside, Singh said.
Anuradha Pendse and Nalini Properties were alleged to have sold shares of Tata Finance in March 2001 on the basis of unpublished price-sensitive information related to the financial position of the company.
Dilip Pendse, the then managing director of Tata Finance and Anuradha were alleged to have leaked price sensitive information that Tata Finance had suffered a loss of Rs 79.37 crore consequent to its investment in Nishkalp Investment and Trading Company.
“On the basis of this information provided by Dilip Pendse, Anuradha Pendse and Nalini Properties (of which Anuradha Pendse is a Director) sold around 40,000 shares of Tata Finance at Rs 90 per share and made unjust profits on account of the said sale,” a Securities and Exchange Board of India (Sebi) order had said.
Sebi had restrained Dilip from accessing the securities market and prohibited him from buying, selling or otherwise dealing in the securities market for a period of five years from March 31, 2009, Singh said.