Sun Pharma shares tumble following report of regulatory probe
Photo Credit: Reuters

Shares of India’s Sun Pharmaceutical Industries sank more than 10 percent on Monday after a report of a regulatory probe against the country’s biggest drug manufacturer by market value.

Markets regulator Securities and Exchange Board of India (SEBI) is likely to reopen an insider trading case against Sun, a report by the PTI carried here in Indian daily Economic Times said.

A whistleblower approached the SEBI with a document alleging various irregularities by the Mumbai-headquartered company, its promoter Dilip Shanghvi and others, the report said.

Sun Pharma, its managing director and nine other entities had settled an insider trading probe last year after paying a settlement amount but the SEBI had not disclosed any details of the case at the time, the report added.

Sun did not immediately respond to a request from Reuters for comment.

Its shares hit their lowest in six months and were on course for their worst one-day performance in 18 months, weighing on the NSE index.

More than 37 million shares changed hands by 0647 GMT, over five times Sun’s 30-day moving average trading volume.

The stock has already fallen over 16 percent since mid-November, when the drugmaker reported a surprise loss for the September quarter.

In the days following its financial results a brokerage raised concerns over corporate governance practices at the company, according to media reports. Sun responded last week, saying any issues only concerned historic events.

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