SEBI Closes Unitech Stock Manipulation Probe, Cites Insufficient Evidence Against Chandra Brothers

SEBI has closed its investigation into allegations of stock manipulation against Sanjay Chandra and Ajay Chandra, former promoters of Unitech Ltd. The investigation, spanning several years, sought to determine if the Chandra brothers manipulated stock prices by routing funds through overseas accounts. SEBI looked into funds allegedly routed through UBS AG between 2006 and 2008 to manipulate Unitech's stock.\r

It was revealed that funds were transferred from Unitech's Indian accounts to its overseas subsidiaries, then to UBS accounts, and finally to Pluri Emerging Companies PCC Fund for purchasing Unitech shares. However, SEBI found insufficient corroborative evidence to substantiate these allegations.\r

SEBI noted that while there were transactions between Unitech and its subsidiaries, including Nectrus Ltd., and discussions about subscribing to Pluri funds, there was no definitive link between the funds transferred and the investment in Unitech shares by Pluri. The investigation concluded that the evidence was insufficient to prove the Chandra brothers engaged in manipulative practices.\r

Based on these findings, SEBI closed the investigation, stating that no further action was warranted under the SEBI Act, 1992, and the PFUTP Regulations, 2003.