Sebi revokes order against Poonawalla Finance MD & CEO Abhay Bhutada

Proceedings against other entities to continue

Sebi on Friday revoked an order passed against Abhay Bhutada, MD and CEO of Poonawalla Finance (formerly Magma Fincorp).

In an interim order dated September 15, 2021, Sebi had barred Bhutada and seven others for allegedly passing unpublished price sensitive information (UPSI) and insider trading.

“In the interim order, it was observed that Bhutada had not traded in the scrip of the company. However, Bhutada was suspected of communicating UPSI to certain entities  who were  alleged to have directly/indirectly  traded  in  the  scrip  of Magma.

Sebi conducted a detailed  investigation in the  matter, to ascertain  the violations of securities laws, if any.

Pursuant to the investigation, it was found that Bhutada  had  not communicated to UPSI,” Sebi said in an order. Sebi, however, said proceedings against other entities are still ongoing.