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Sebi to probe Otis, Carrier share trade

The Securities and Exchange Board of India will probe share price moves in Carrier Aircon and Otis Elevator Company (India) Ltd to check for insider trading, an economic daily said on Saturday.

The newspaper, citing Sebi chairman D R Mehta, said the regulator has asked the Bombay Stock Exchange and the National Stock Exchange to submit reports on abnormal trading patterns and price movements in the shares of the two firms.

Last week, the US parents of both companies made open offers to buy substantial stakes in their Indian subsidiaries.

On Monday, Carrier Corp, the world's largest maker of air-conditioners, along with two of its units, offered to buy the 49 per cent of the group's Indian subsidiary that it does not own.

The companies made an offer of Rs 100 per share, which was a steep premium to the prevailing market price.

On the BSE, shares of Carrier Aircon rose by nearly 15 per cent to Rs 63.65 in three trading sessions ahead of the announcement on May 14. It closed at Rs 95.80 on Friday.

On Wednesday, Otis Elevator Company offered to buy a 31.1 per cent stake in its Indian subsidiary at Rs 280 per share, also higher than the then prevailing market price.

Shares of Otis Elevator jumped nearly 17 per cent in the three sessions before the announcement to Rs 225. It gained a further 19 per cent since to close Friday at Rs 268.05.

Company officials were not immediately available for comment.

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