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 https://economictimes.indiatimes.com/markets/stocks/news/sebi-may-reopen-insider-trading-case-against-sun-pharma/articleshow/66887801.cms in Indian daily Economic Times said.
The SEBI will also probe alleged lapses by some of Sun's promoters in raising funds overseas, the report added.
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.