- Based on a petition filed on charges on insider trading, the Andhra Pradesh High Court ordered that interim status quo be maintained on the merger of Sun Pharma and Ranbaxy, and issued notices to Securities and Exchange Board of India (SEBI), BSE, NSE, Sun Pharma, Ranbaxy, Daichii Sankyo and Silver Street Developers.
- The petitioners levelled charges of insider trading as heavy trading of Ranbaxy stock (about 7 million) was seen before the merger was announced which pushed the share price over 25%, suggesting that certain persons had prior knowledge, which amounts to violation of SEBI Insider Trading Regulations.
- For the merger to now be complete, both the companies must obtain approvals from BSE and NSE and various other institutions such as Competition Commission of India and respective High Courts.
- Sun Pharma announced that purchase of shares of Ranbaxy Laboratories by Silver Street Developers LLP does not amount to violation of law because both their partners are 100% subsidiaries of Sun Pharma thus increasing the profits of Sun Pharma itself.
- Read at: http://www.thehindu.com/
todays-paper/tp-business/high- court-puts-sun-pharma-and- ranbaxy-merger-on-hold/ article5961373.ece
- Insider Trading
- Bear (Stock Markets)
- Bull (Stock Markets)