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2011 (11) TMI 781 - AT - Companies LawWhether the decision taken by a listed investment company to dispose of a part of its investment is “price sensitive information” requiring mandatory disclosure to the stock exchange(s) under clause 2.1 of the Code of Corporate Disclosure Practices as specified in Schedule II to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992? Held that:- We are in agreement with the learned senior counsel for the appellants that the non-disclosure in the press release was only in regard to the source of funds through which FCGL was to acquire the coal mines and the decision meant only switching of investments which is a part of normal business activity of an investment company. Interestingly, the adjudicating officer in para 34 of the impugned order has himself observed that the method of funding a project is not per se price sensitive information but nevertheless goes on to hold that since the price of the scrip of FCGL had gone up, the decision of FCGL to dispose of the investment in the Coke company was price sensitive. The adjudicating officer has missed the real point. The price of the scrip of FCGL had gone up not because it decided to dispose of its investment in the Coke company but because of the fact that it acquired coal mines in Australia which information was price sensitive and had been disclosed to the market. We cannot, therefore, uphold the findings of the adjudicating officer.
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