Securities and Exchange Board have set out in its order banning Arora — the former star Asia-Pacific fund manager of Alliance Capital Management — from trading in August are far from convincing.

There are three main charges. One, that Arora played a pivotal role in thwarting Alliance Capital’s efforts to sell its India operations by resorting to unethical means.

Two, he did not make disclosures or sometimes made wrongful disclosures when some of Alliance’s holdings in certain stocks breached limits that required informing the respective companies.

Third, he sold his entire holding in Digital GlobalSoft based on unpublished, price-sensitive information.

In this case, SEBI conducted investigations into the management, conduct and other affairs of the Alliance Capital Asset Management (I) Pvt. Ltd. (ACAML). Samir Arora was the fund manager of the company. Knowing that the company was inviting bids for takeover of the same, he made special arrangement with Henderson Global Investors. For helping this company takeover his present company, he purchased shares and when the price rose sold off the shares to get a considerable profit. The Authority found him guilty and directed him not to buy, sell or deal in securities, in any manner, directly or indirectly, for a period of five years.

The conduct of Samir Arora is not in consonance with the high standards of integrity, fairness and professionalism expected from a fund manager. His conduct erodes the investors’ confidence and is detrimental to their interests as well as the safety and integrity of the securities market. His association in the securities market in any capacity is prejudicial to the interests of the investors and the safety and integrity of the securities market.

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