Mumbai: The Securities and Exchange Board of India (Sebi) will look into the alleged insider-trading in Polaris Software Labs scrip prior to the announcement of the Chennai-based company's merger with Citigroup's unlisted infotech arm Orbitech Solutions Ltd.
When asked about the rise in price and volumes of Polaris scrip prior to the merger announcement last week, Sebi chairman G N Bajpai said: ''The market regulator will look into the matter.''
The price of the Polaris scrip rose 39 per cent from Rs 193 on 22 April 2002 to Rs 268 on 22 May 2002 - the day one of the biggest deals in the Indian software sector was announced.
Volumes also saw a sharp increase during the period - from a volume of 9 lakh shares on 22 April to 18 lakh shares on 22 May on the Bombay Stock Exchange (BSE). And volumes on the National Stock Exchange rose from 65 lakh to 1.26 crore shares during the period.
On 13 May, Polaris, in response to media reports about the merger deal with the Citigroup company, had informed the BSE that the company was looking at various options, but there was no firm understanding with anybody. But on 22 May, the company board approved a proposal to merge with Orbitech.