SEBI INVESTIGATION EXPOSES “AGENT” ALAWANI FOR HELPING ATUL KIRLOSKAR IN 275 CR FRAUD AT KIRLOSKAR INDUSTRIES LIMITED
SEBI has slapped a penalty of Rs.15 lakhs to Kirloskar Industries (KIL) Director, AN Alawani for indulging in fraudulent and unfair trade practices and alleged that he helped the promoters who owned 15% of the company to walk away with Rs. 275 crores . The regular has also barred him from the capital markets for period of six months. Even though Mr. Alawani did not trade in shares in his own personal trading account, SEBI in their note said he was an insider as he was in possession of the UPSI. He was trading as an authorised “agent” for and behalf of the Kirloskar Industries (KIL). The note added that he aided KIL promoters in selling their shares of Kirloskar Brothers Ltd (KBL) to Kirloskar Industries (KIL) thus together have allegedly committed fraud on KIL and public/ minority shareholders of the company. In KBL ’s board meeting held on 27th July 2010, the management disclosed the poor profitability of KBL . This was clearly confidential information, and also UPSI under