Axis Capital ED, Individual Settle Insider Trading Case with Sebi

New Delhi, Apr 11 (PTI) A former Axis Capital executive director and an individual on Friday settled with Sebi a case pertaining to the alleged violation of insider trading rules in the shares of BF Investment after paying Rs 1.13 crore collectively towards the settlement amount.

Former Axis Capital Executive Director Ashish Anup Nigam and Nehal Milan Mehta also voluntarily undertook a six-month debarment from the securities market.

Apart from the settlement amount, Mehta paid Rs 37.28 lakh towards disgorgement of 'unlawful gain' and interest.

The order came after the regulator received two separate settlement applications from the applicants in terms of the Sebi's (settlement proceedings) regulations proposing to settle the instant proceedings without "admitting or denying the allegations".

As per the settlement order, the markets watchdog will not initiate enforcement proceedings against Mehta and Nigam for the violations. However, Sebi retained the right to take further action if any misrepresentation is discovered or if they breach any terms of the settlement.

"...in terms of the settlement regulations, it is hereby ordered that the proceedings initiated against the applicants vide Show Cause Notice dated September 11, 2024, is disposed of," Sebi's Chief General Manager Santosh Shukla said in the order.

The Securities and Exchange Board of India (Sebi) had conducted an investigation to ascertain whether Nehal Mehta, had traded in the scrip of BF Investment while in possession of Unpublished Price Sensitive Information (UPSI).


The investigation period was from September 4, 2022, to March 20, 2023.

The UPSI announcement was made by BF Investment, wherein the company had informed stock exchanges on December 30, 2022, about receiving an initial public announcement from Axis Capital on behalf of DGM Realities, Ajinkya Investment and Sundaram Trading (acquirers) for acquiring public shareholding and delisting the company.

The acquirers were part of the promoter group of BF Investment. It was observed that the information was UPSI in terms of PIT (Prohibition of Insider Trading) norms. The period of UPSI was considered from December 4-30, 2022, as per Sebi.

Pursuant to the investigation, a common show cause notice (SCN) was issued on September 11, 2024, to the noticees / applicants for the alleged violations.

Nigam, who was the executive director of Axis Capital Ltd and the manager of the proposed delisting offer of BF Investment Ltd, was in possession of UPSI and has communicated the same to Mehta who traded in the scrip and made unlawful gains worth Rs 30.47 lakh.

Therefore, Nehal Mehta and Ashish Anup Nigam had contravened the provisions of PIT rules.

Subsequently, Mehta and Nigam paid the settlement as well as the disgorgement amount, which was confirmed by the markets watchdog, and settled the matter with Sebi.