Brokers seek Sebi probe of Ranbaxy trades before Sun Pharma deal
The president of Indian brokerage association plans to formally request Sebi to initiate investigation
Mumbai: The president of an Indian brokerage association is planning to formally request that India’s market regulator Securities and Exchange Board of india (Sebi) investigate trading in Ranbaxy Laboratories Ltd shares in the days leading up to its acquisition by Sun Pharmaceutical Industries Ltd.
Ranbaxy shares surged 24% in the three trading sessions leading up to the announcement on Monday that Sun Pharma had agreed to buy Ranbaxy for $3.2 billion.
“Because there was such kind of price movement before the deal was announced, we have decided to check with the regulator," Naresh Tejwani, president of the Association of National Exchanges Members of India (ANMI) said on Wednesday.
“We will write to them by the end of the day to investigate into the matter."
A Ranbaxy spokesman declined to comment.
A spokesman for Sebi also declined to comment.
Sun Pharma did not immediately respond to requests for comment.
On Wednesday, shares in Sun Pharma gained as much as 8.1%, adding to their 2.9% rise on Monday, as brokers upgrade the stock after the company agreed to buy Ranbaxy for $3.2 billion. Shares of Ranbaxy, too, rose as much as 6.23%.
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