RBL Bank in focus on insider trading charges

The stock of RBL Bank tanked more than 12 per cent on BSE as market participants turned cautious over insider trading in the bank. After the founder of Coffee Day Enterprises, Mr.VG Siddhartha went missing on July 29, the next trading day 27 employees of RBL Bank sold their shares.

On July 30, the stock of RBL Bank had opened at Rs. 448.3 per share and closed at Rs. 398.2 per share. Total, 3.72 lakh shares worth Rs. 15.72 crore were sold by employees at an average price of Rs. 421.94 per share on that day.

The bank had sent a clarification to exchanges on this activity.  In the statement, RBL bank had mentioned that “The Bank has a Board approved RBL Trading Code pursuant to the provisions of SEBI (Prohibition of Insider Trading) Regulations 2015. This code lays down processes and procedures to be followed by the employees while trading in the securities of the Bank. The transactions done by the employees are strictly done within the purview of the said code.”

 RBL Bank is an Indian scheduled commercial bank offers services in five sectors: corporate and institutional banking, retail banking, financial market access, agricultural development banking.

On Wednesday, the stock of RBL Bank opened at Rs. 352.95 per share and made an intraday high and low of Rs. 359.00 and Rs. 291.90, respectively on the BSE. The stock closed at Rs 313.65, down by 12.09 per cent.