Insider trading at Fortis Healthcare? Watchdog eyeing a scam

Market regulator Securities and Exchange Board of India (Sebi) is probing suspected insider trading by some institutional investors and other regulatory lapses at Fortis Healthcare amid a takeover battle and boardroom upheaval at the hospital chain, officials said.

Apart from the Sebi probe that also includes investigation into suspected disclosure lapses, the Serious Fraud Investigation Office (SFIO) and registrar of companies are also looking into alleged financial irregularities at Fortis and other promoter group entities including Religare, they added.

Fortis is in the midst of a heated takeover battle with five entities bidding for the company along with a upheaval at the boardroom, wherein several directors have been stepping down.

Besides, three directors have already resigned ahead of a shareholder vote on Tuesday to decide their future.

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Sebi had first begun the investigation in February following reports that financial irregularities emerged at Fortis.