Business

Insider trading cloud over RBL Bank after Cafe Coffee Day boss' death

Updated : August 28, 2019 01:48 PM IST

The street had been worried about RBL Bank’s high exposure to the CCD group

On July 30, 27 employees of RBL Bank sold their shares in the bank

3.72 lakh shares worth Rs 15.72 crore were sold by employees at an average price of Rs 421.94 per share

CCD’s VG Siddhartha went missing on July 29 evening and his body was found on July 31.

On July 30, the next trading day after the news broke out, 27 employees of RBL Bank sold their shares in the bank. The street had been worried about the bank’s high exposure to the CCD group.

RBL Bank stocks on July 30 opened at Rs 448.3 per share and ended the session at Rs 398.2 per share.

At a total, 3.72 lakh shares worth Rs 15.72 crore were sold by employees at an average price of Rs 421.94 per share.

The bank sent a clarification to exchanges on this at 8.41pm that evening.

RBL Bank in a response to CNBC-TV18’s query on this trade said, “The Bank has a Board approved RBL Trading Code pursuant to the provisions of SEBI (Prohibition of Insider Trading) Regulations 2015. The said code lays down processes and procedures to be followed by the employees while trading in the securities (shares) of the Bank. The transactions done by the employees are strictly done within the purview of the said code.”