Sun pharma seeks SEBI intervention after allegations of unfair trade practices

Against the backdrop of reports that a second whistleblower complaint has been filed against it and shares taking a beating on the exchanges, Sun Pharma has written to Sebi flagging concerns that certain entities are allegedly adopting unfair trade practices.

New Delhi: Sun Pharmaceutical Industries on Friday asked markets regulator Sebi to look into the issues of certain entities and individuals allegedly adopting unfair trade practices prejudicial to the company's shareholders.

Against the backdrop of reports that a second whistleblower complaint has been filed against it and shares taking a beating on the exchanges, Sun Pharma has written to Sebi flagging concerns that certain entities are allegedly adopting unfair trade practices.

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In a letter to Sebi Chairman Ajay Tyagi, the Mumbai-based drugmaker said it has come to know from a media report that a second whistleblower complaint has been filed against the company.

"We are concerned that certain entities/individuals are adopting unfair trade practices prejudicial to the interest of shareholders and other stakeholders," the company said in the letter, a copy of which has been submitted to the stock exchanges.

In a clarification to BSE, the company said it has not received the alleged "172-page whistleblower complaint" and therefore it is not privy to the contents of the document being referred to in the said media article.

"Hence, we cannot comment on the points being raised in the said media article," it said.

In November 2018, a whistleblower approached Sebi with a document alleging various irregularities by the company, its promoter and others.

Referring to the latest reports, Sun Pharma said it is evident that shareholders value has been drastically eroded within a short span of time due to "unsubstantiated complaint/ allegation" against the company and mala fide campaign launched by certain media houses.

"We request your office to examine the matter in its entirety, and the role of some media houses and other stakeholders," the drug maker said.

According to Sun Pharma, the said whistleblower documents and other confidential e-mails are being offered for inspection to institutional investors by one media house as per the above report, which again the company is not privy to.

"In these circumstances, there is a great asymmetry in the information circulating between analysts, investors and media leading to intense speculation.

"The availability of information contained in the whistleblower documents to a set of selective investors does put other investors including retail investors in a disadvantageous position," the letter said.

Shares of Sun Pharma came under massive selling pressure Friday, plummeting over 8 per cent that wiped out Rs 8,735 crore from its market valuation, amid reports of fresh allegations by a whistleblower against the company.

Read Also: More trouble for Sun Pharma: SEBI confirms examining the complaint by whistleblower