SEBI bars former NSEL director Hariharan Vaidyalingam for 7 years from markets in MCX insider trading case

New Delhi: SEBI on Wednesday barred former NSEL director Hariharan Vaidyalingam from securities market for seven years in the case of insider trading in the shares of Multi Commodity Exchange (MCX). Besides, the watchdog has directed that a copy of the ruling should be forwarded to the Monetary Authority of Singapore and the US Securities and Exchange Commission since Vaidyalingam is working in Singapore and currently residing there. In August 2017, SEBI passed an interim order against eight persons, including Vaidyalingam, and also directed impounding the losses averted by them in the trading of MCX shares. [caption id=“attachment_4254843” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] These persons were found to have traded in MCX shares with prior information about the National Spot Exchange Ltd (NSEL) case. The bourse, which was promoted by Financial Technologies India Ltd (FTIL), suspended its trading in July 2013 following a payment crisis. Both MCX and NSEL were part of the FTIL group. FTIL has changed its name to 63 Moons Technologies. In a 46-page order, SEBI restrained Vaidyalingam, who is also a former MCX director, from accessing the securities market for seven years. It has been established that Vaidyalingam as an insider sold the shares of MCX when in possession of unpublished price sensitive information and violated norms that prohibit insider trading. “Insider trading is a serious violation and can cause severe damage to public confidence in the securities market. An act of insider trading, therefore, has to be viewed strictly irrespective of its ultimate outcome for the person indulging in the same,” the order said.