Aurobindo Pharma promoters face Rs 6.53 crore settlement order

Yash Agarwal — Sat, 16 May 2026 16:12:40 +0000

The Hon’ble High Court of Telangana, Hyderabad, has dismissed a writ petition filed by the promoters of Aurobindo Pharma regarding a settlement order issued by the Securities and Exchange Board of India (SEBI). The court’s decision, dated May 6, 2026, pertains to a case involving alleged violations of insider trading regulations.

The petitioners, including Mr. P. V. Ramprasad Reddy, Ms. P. Suneela Rani, Mr. Kambam Prasad Reddy, and Trident Chemphar Limited, had initially filed a settlement application with SEBI under the Securities and Exchange Board of India (Settlement) Regulations, 2018. SEBI’s settlement order, issued on May 6, 2020, required the petitioners to address alleged violations of Regulations 3 and 4, read with Regulation 12 (2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992.

On October 23, 2020, SEBI directed the petitioners to deposit ₹6.53 crores, representing profits made from trading in Aurobindo Pharma shares, along with 12% annual interest from the date of violation to the date of filing revised settlement terms, into the Investor Protection and Education Fund within 15 days. This directive, referred to as the ‘Impugned Communication,’ prompted the petitioners to seek legal recourse through a writ petition.

The High Court’s dismissal of the writ petition means the petitioners must comply with SEBI’s directive. The petitioners are now consulting with their legal advisors to determine their next steps in response to the court’s order.

Aurobindo Pharma has clarified that the court’s decision does not impact the company’s financials, operations, or other activities, as the order is directed against the petitioners and not the company itself.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

P. V. Ramprasad Reddy | Business Upturn

Aurobindo Pharma promoters face Rs 6.53 crore settlement order