Mumbai, Aug 10: The Securities and Exchange Board of India (SEBI) today banned fund manager, Samir Arora, from trading in the Indian capital markets. He was the Chief Investment Officer of Alliance Mutual Funds. Arora who till now controlled over Rs 3,000 crore worth of funds has been banned allegedly for insider trading. The stock market regulator says:
  • Arora managed to avoid losses worth Rs 24 crore for Alliance Mutual Funds. He used his contacts with the management of companies like Digital Global Soft to sell the stocks before the shares fell, due to news of a merger.


  • Controlled funds of his former company in a non-transparent manner.


  • Invested in companies where he had close rapport with the management. Further his comments on these companies in the media helped to boost the share price of these companies.



  • Entered into a private deal with a potential bidder for his fund, which led to huge losses for investors of the fund.
    • Very few market analysts are willing to comment on how the SEBI order will affect the present bull rally in the Indian markets.


    But they do admit that the warnings from SEBI Chairman, G N Bajpai, earlier this week was a hint that a crackdown was inevitable. Bureau Report