Mumbai, July 8 : The Securities and Exchange Board of India (SEBI) has barred brokerage firm Allegro Capital Pvt Ltd and its Chairman and CEO Kunal Ashok Kashyap from the securities market for a period of one year over involvement in insider trading in the scrip of Biocon Ltd. "Kunal Ashok Kashyap and M/s Allegro Capital Private Limited shall not buy, sell or otherwise deal in the securities market in any manner whatsoever or access the securities market, directly or indirectly, for a period of one year from the date of this order," it said. The market regulator has also imposed a penalty of Rs 10 lakh each on the investment advisory firm and its head. A SEBI order on Thursday said that Biocon had made an announcement of an "exclusive global collaboration" with Sandoz on "NextGeneration Biosimilars" and the capital market regulator observed that after the public announcement was made, the scrip witnessed rise of 5.6 per cent in the closing price on the next day post the announcement. It initiated an investigation to ascertain whether certain persons or entities have traded in the scrip of Biocon while they were in possession of unpublished price sensitive information and were, thus, in violation of norms to prohibit insider norms. As per the allegations, Allegro Capital was in a temporary business relationship with Biocon and consequent to the same, Kashyap was in frequent communication with the officers of the company. Further, by virtue of his directorship in Mazumdar Shaw Medical Foundation and his majority shareholding in the trading member which was used by the officers of the company, it was alleged that Kashyap was in a position where he was in regular touch with the officers of the company. The SEBI probe found that the noticees have made wrongful notional gains of over Rs 24.68 lakh, and the regulator has directed both the brokerage and its Chairman and CEO Kashyap to jointly disgorge the amount. "As the noticees have violated regulation 4 (1) of PIT Regulations and Sections 12A (d) and 12A(e) of SEBI Act and have made wrongful notional gains by violating provisions of securities laws, I find that Noticees are liable for disgorging the wrongful notional gains of Rs 24,68,751, jointly and severally, made by them, as alleged in the SCN (show cause notice)," said the order by SEBI Whole Time Member Madhabi Puri Buch. The order noted that there is no material on record to show the quantum of loss caused to any specific investor or group of investors as a result of noticees' default. Further, there is no material on record to show that the default by the noticees is repetitive in nature. /IANS