Sun Pharma declines 3% as Sebi confirms whistleblower complaint
NEW DELHI: Shares of Sun Pharma, Indias largest drugmaker, declined 3 per cent in morning trade on Thursday, a day after the Securities Exchange Board of India (Sebi) confirmed reports that it had received a whistleblower complaint against the company.
"We have received the complaint against Sun Pharma and we are examining it", Sebi chairman Ajay Tyagi told reporters after its board meeting on Wednesday.
Shares of Sun Pharma have been under pressure after reports of corporate governance issues and a whistleblower complaint to Sebi. It had prompted the management to issue a clarification to investors.
Around 9:45 am, shares of the company traded 1.98 per cent down at Rs 422.75 apiece. Equity benchmark Sensex was 0.63 per cent up at 36,006 at that time.
However, reports have stated that the regulator is likely to reopen the case as it has powers to reopen cases of settlement related to insider trading on various grounds.
The sources had said that alleged irregularities by the companys promoters and others in raising funds through Foreign Currency Convertible Bonds (FCCBs) are also likely to be investigated by the watchdog.
In August 2017, the regulator had not disclosed the details of the insider trading case.
Sensex and Nifty were trading higher after retail inflation plunged to a 17-month low in November, hinting at the strong possibility of a rate cut by the RBI sooner than expected.