Highlights
- Dipesh Kerai fined £52,731 and Bhavesh Hirani fined £56,000 for insider dealing in Bidstack Group shares.
- Former interim CFO Hirani passed confidential information about major deal to Kerai before public announcement.
- Pair bought 1.3 million shares before announcement, profiting over £9,000 as share price rose 125 per cent.
Bhavesh Hirani, who served as interim chief financial officer at Bidstack in December 2021, possessed inside information about a major upcoming deal between Bidstack and a large video game publisher.
Before the public announcement, Hirani passed this confidential information to Dipesh Kerai.
Hirani then opened a trading account in Kerai's name and, with his assistance, purchased 1.3 million Bidstack shares whilst in possession of inside information.
When the deal became public, Bidstack's share price rose by more than 125 per cent, generating over £9,000 profit for Kerai, funds the FCA has now required him to return as part of his penalty.
The FCA was initially notified of the trading through Suspicious Transaction and Order Reports submitted by a firm, demonstrating the vital role of industry in uncovering market abuse.
Both individuals' conduct breached Article 14 of the UK Market Abuse Regulation relating to insider dealing and unlawful disclosure of inside information.
Penalties and enforcement
Steve Smart, executive director of enforcement and market oversight at the FCA, stated "Dipesh Kerai and Bhavesh Hirani exploited inside information for their own gain, trading on details other investors couldn't have known.
Big thanks to the firm that reported its suspicions, enabling us to identify the perpetrators and hold them to account. Working with industry we will continue to take action against anyone who misuses inside information and undermines trust in UK markets."
Kerai's total financial penalty of £52,731 includes £9,260.74 in disgorgement plus interest and a £42,000 penalty, reduced by 30 per cent through settlement.
Hirani's £56,000 penalty reflects a 30 per cent settlement discount applied to the assessed £80,000 penalty. Tackling financial crime remains a priority under the FCA's five-year strategy.
