The company shares were seen trading lower by 5.52% at Rs 126.00 on BSE at 11.30 am IST. It touched intra-day high of Rs 122.
Polaris Financials was earlier called as Polaris Software Limited. Mr. Jain, a co-founder of Polaris Software Lab, was its chairman in 2000. He was also a director of Polaris Holdings. Now, he is alleged of insider trading in the company's shares.
Sebi said that "During the investigations, it was observed that the company had deliberately withheld this price sensitive information from the public domain. During August 23, 2000 to September 19, 2000 Allsec Securities Ltd. (Allsec), a Chennai based broking company had dealt in the scrip of the company on behalf of its clients. Polaris Holding Private Limited (PHPL) was one of such clients of Allsec. During the relevant time, PHPL, holding of 36% in the company, was one of the promoters of the company. Mr. Arun Jain was one of the promoters/ directors and Chairman- cum -Managing Director (CMD) of the company. Mr. Arun Jain and Mrs. Manju Jain were directors of PHPL.