New Delhi, Jan 7 (IANS): Jaiprahash Associates chairman Manoj Gaur has decided to move the Securities Appellate Tribunal and challenge the penalty imposed on him and some family members on charges of insider trading.

In an order dated Jan 5, the adjudicating officer of the Securities and Exchange Board of India (SEBI) imposed a penalty of Rs.10 lakh each on Gaur, his wife Urvashi, and brother Sameer, among others, for alleged violation of insider trading norms.

According to Gaur, the transaction, involving purchase of shares by his wife and his brother from Oct 13 to Oct 16, 2008, was not based on any insider information. He said these shares were not even sold.

"The findings in the order are completely erroneous and contrary to factual position," Gaur said in a statement.

"It is unfortunate that despite adequate representation to the adjudicating officer, frivolous inferences have been drawn. Aggrieved by the order, we are in the process of challenging the same before the Securities Appellate Tribunal," he said.