A former CFO at Bidstack when it was a listed company has been fined for insider dealing.
Bhavesh Hirani and Dipesh Kerai have been penalised by the Financial Conduct Authority for profiting from inside information about the then-listed firm.
In December 2021, Hirani was the interim CFO at Bidstack, a tech company that placed advertising inside video games. This meant he had access to inside information about a major upcoming deal between Bidstack and a large video game publisher.
Before it was announced to the public, Hirani passed this confidential information to Kerai, according to the FCA.
It said Hirani then opened a trading account in Kerai’s name and, with his help, bought 1.3 million Bidstack shares in advance of the announcement while in possession of inside information.
When the deal was made public, Bidstack’s share price rose by more than 125%. Kerai made more than £9,000 in profit, which the FCA has now required him to return as part of his penalty.
Hirani has been fined £56,000, while Kerai has been fined £52,731.
‘Audoo is a mission-led business – we’re not focused on exit’
“Dipesh Kerai and Bhavesh Hirani exploited inside information for their own gain, trading on details other investors couldn’t have known,” said Steve Smart, executive director of enforcement and market oversight at the FCA.
The FCA was initially notified of the trading through Suspicious Transaction and Order Reports submitted by a firm.
“Big thanks to the firm that reported its suspicions, enabling us to identify the perpetrators and hold them to account,” continued Smart. “Working with industry we will continue to take action against anyone who misuses inside information and undermines trust in UK markets.”