Shopclues founder Sandeep Aggarwal, who pleaded guilty on charges of insider trading levelled by the US Securities & Exchanges Commission, has been barred from the US securities market.
The commission ordered (pdf) earlier this month that Aggarwal is:
Barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
Aggarwal, who founded e-commerce firm ShopClues, was arrested by the FBI on July 30 for allegedly tipping off a hedge fund manager who pleaded guilty of insider trading earlier. He was subsequently released on a $500,000 bond until trial.
Before starting ShopClues in India, he was a Wall Street analyst.