INSUBCONTINENT EXCLUSIVE:
Abhay Bhutada's resignation came after SEBI banned him from the securities market for insider trading.Shares of the Adar Poonawalla-backed
non-banking finance company (NBFC) - Poonawalla Fincorp - were locked in a 5 per cent lower circuit at Rs 163.55 for second straight session
after it informed exchanges that its managing director Abhay Bhutada resigned from the board of the company with immediate effect from
Abhay Bhutada ceases to be a Director and Key Managerial Personnel of the Company, Poonawalla Fincorp said in an exchange filing.Abhay
Bhutada's resignation came after the market regulator Securities Exchange Board of India (SEBI) banned him and seven others from the
securities market for insider trading.Managing Director Abhay Bhutada was found guilty of sharing information about Adar Poonawalla-owned
Rising Sun Holdings' proposed stake buy in the company before it was public knowledge, the Securities and Exchange Board of India (SEBI)
said in an interim order on Wednesday.Rising Sun Holdings had acquired a majority stake in Poonawalla Fincorp, formerly called Magma
Fincorp, earlier this year
At the time Bhutada was the chief executive officer of Poonawalla Finance, a private subsidiary of Rising Sun Holdings
Based on call records, financial dealings and bank statements, SEBI discovered that several entities related to Mr Bhutada traded in Magma
stocks before details of Rising Sun's acquisition were disclosed to the stock exchanges.Magma Fincorp said it had received shareholder
approval for Rising Sun Holdings' acquisition of a majority stake in the company via preferential issue of up to Rs 3,456 crore.As of 11:30
am, there were over 9 lakh pending sell orders for Poonawalla Fincorp shares with no buy orders, according to data on the BSE.
