Chennai: A day after Mr A Vellayan stepped down from the chairmanship of the Rs 24,300 crore Murugappa Group, company sources said legal action will take its course and the company will decide further matters shortly. On Friday, Mr Vellayan stepped down as chairman of the group and from the corporate board of Coromandel International and EID Parry India after the market regulator, Securities and Exchange Board of India (Sebi), charged him and two others with insider trading during the acquisition of a Gujarat-based company in 2011.
In an order, the regulator alleged that Mr Vellayan passed on “unpublished price-sensitive information pertaining to the acquisition of Sabero Organic Gujarat by Coromandel International, a Murugappa Group company, to some individuals who traded in the shares of Sabero on the basis of that information”.
The company said in a statement that the link drawn in this interim order is not a conclusive finding and Mr Vellayan is resolute in fighting the serious harm to his reputation caused by this order.
