American watchdog SEC bans Indian resident from securities market for insider trading
10 Jan 2014 12:52 AM GMT
The SEC order, issued on 8 January, follows Aggarwal's submitting an offer of settlement which it has accepted. Aggarwal has been barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognised statistical rating organisation.
He has been restrained from ‘participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock’.
The SEC charged Aggarwal for tipping secret information to a S A C Capital portfolio manager who had earlier been charged with insider trading. Its amended complaint alleged that in July 2009 Aggarwal learned confidential details about negotiations concerning the formation of a partnership between two technology companies from an individual who worked at one of the companies.
Later, the information was passed on to a portfolio manager who subsequently traded securities based on the tip.
‘Aggarwal knew, recklessly disregarded, or should have known, that the material non-public information he received and tipped was disclosed or misappropriated in breach of a fiduciary duty, or similar relationship of trust and confidence,’ the complaint had said. In November last year, Aggarwal pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud.
As per SEC's latest order, Aggarwal resides in India. From April 2008 until April 2010, he was the senior Internet research analyst at Collins Stewart LLC, a registered broker dealer and registered investment adviser that was subsequently acquired by Canaccord Financial, and is now known as Canaccord Genuity Inc, it added.
He has been restrained from ‘participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock’.
The SEC charged Aggarwal for tipping secret information to a S A C Capital portfolio manager who had earlier been charged with insider trading. Its amended complaint alleged that in July 2009 Aggarwal learned confidential details about negotiations concerning the formation of a partnership between two technology companies from an individual who worked at one of the companies.
Later, the information was passed on to a portfolio manager who subsequently traded securities based on the tip.
‘Aggarwal knew, recklessly disregarded, or should have known, that the material non-public information he received and tipped was disclosed or misappropriated in breach of a fiduciary duty, or similar relationship of trust and confidence,’ the complaint had said. In November last year, Aggarwal pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud.
As per SEC's latest order, Aggarwal resides in India. From April 2008 until April 2010, he was the senior Internet research analyst at Collins Stewart LLC, a registered broker dealer and registered investment adviser that was subsequently acquired by Canaccord Financial, and is now known as Canaccord Genuity Inc, it added.
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