PB Fintech CEO Dahiya Settles Insider Trading Case With SEBI

PB Fintech CEO Yashish Dahiya Settles Insider Trading Case With SEBI

SUMMARY

Dahiya settled the case by paying a settlement amount of INR 9.43 Lakh to the markets regulator

The case pertains to a $2 Mn investment made by PB Fintech FZ-LLC, Dubai in YKNP Marketing Management in November 2022 to acquire a 26.72% stake in the latter

Dahiya allegedly failed to identify the acquisition as unpublished price sensitive information highlighted in terms of SEBI (PIT) Regulations, 2015

About a year after the Securities and Exchange Board of India (SEBI) issued a show cause notice to PB Fintech CEO and cofounder Yashish Dahiya over alleged insider trading, he has settled the case by paying a settlement amount of INR 9.43 Lakh to the markets regulator.

SEBI, in its settlement order, said that Dahiya proposed to settle the proceeding against him without admitting or denying the findings of the case.

The case pertains to a $2 Mn investment made by PB Fintech FZ-LLC, Dubai in outsourced marketing services provider YKNP Marketing Management in November 2022 to acquire a 26.72% stake in the latter.

PB Fintech FZ-LLC is a wholly owned subsidiary of PB Fintech. Following the investment, YKNP became an associate of PB Fintech FZ-LLC.

Dahiya allegedly failed to identify the acquisition as unpublished price sensitive information highlighted in terms of SEBI (PIT) Regulations, 2015.

While informing the exchanges about the show cause notice last year, PB Fintech said it did not consider the investment an unpublished price sensitive information (UPSI) due to its “non-material value”.

As per the settlement order, Dahiya first proposed to settle the case on August 23, 2024. Consequently, the SEBI’s internal committee set up a high powered advisory committee (HPAC) to consider his application. The committee came up with the settlement amount, which Dahiya agreed to pay.

For context, PB Fintech FZ is a subsidiary of the fintech major operating an online financial marketplace in the United Arab Emirates (UAE).

On January 30, PB Fintech invested INR 35.70 Cr (AED 15,025,000) in its UAE subsidiary to acquire 12,500 equity shares of face value of INR 23,762 (AED 1000) each at a premium of INR 4,800 (AED 202).

The company made the investment to meet PB Fintech FZ’s general operating expenses and enhance brand awareness, office presence and strategic initiatives.

Shares of PB Fintech ended Tuesday’s (March 4) trading session 2.44% lower at INR 1,416.15 on the BSE.