Around 10 officials of DCB Bank have received show causes notices from SEBI, concerning insider trading. The regulators are probing in the trading activities of these executives in the private lender’s shares between September 19, 2015, and October 13, 2015, shows they have sold their holding before Banks’ growth plans became public.
The showcase notices have been sent to the Senior Executive in the Treasury and Human Resources Departments then who had access to the insider information. It cannot be ascertained if the employees are still with DCB Bank.
The regulators said on September 19, 2015, the Bank held a meeting to discuss with the employee about the Bank strategy and Bank license with the business unit heads and support unit heads. The announcement of expanding the branches was made to the stock exchange on 13 October 2015.
DCB shares plunged 20% on October 14, 2015, in response to the bank’s announcement to increase the number of branches to 300 from 160. The regulator in its notice has alleged that these officials have averted losses by trading in the shares of DCB bank during the UPSI (Unpublished price sensitive information) period.
