Abhijit rajan family.
In a significant decision in Securities and Exchange Board of India v. Abhijit Rajan (19 September 2022), the Supreme Court of India has ruled that the motive on the part of the insider to seek profits is an essential precondition for a successful insider trading charge.
Sebi v abhijit rajan 2022 scc online sc 1241
Such a directive from the Supreme Court is likely to have implications for insider trading cases currently within the regulatory system, and also on the manner and extent to which the Securities and Exchange Board of India (SEBI) is likely to initiate actions for insider trading.
The facts of the present case are rather straightforward.
Mr. Rajan was the Chairman and Managing Director of Gammon Infrastructure Projects Limited (GIPL). In 2012, GIPL was awarded a contract by the National Highways Authority of India (NHAI). Similarly, another company, Simplex Infrastructure Limited (SIL) received another contract from the NHAI.
Both GIPL and SIL entered into shareholders’ agreements to implement their respective con