NRI couple charged with insider trading in US

California based attorney Shivbir Grewal and his wife Preetinder Grewal have been charged with insider trading after they used confidential information obtained from a corporate client about a pharmaceutical company and avoided thousands of dollars in losses. The charges relate to Shivbir, who while serving as an outside counsel to a pharma company last year, learned that the company was to announce a significant decline in expected revenue. He swiftly sold his investment in the company's stock within hours of getting the nonpublic information from company officials who sought the advice of his law firm. Shivbir tipped off his wife who also sold all her shares on the basis of the information. By this move the couple avoided losses of nearly $45,000. After the charges against them were filed the couple agreed to pay $90,000 to settle the federal regulator US Securities and Exchange Commission's (SEC) charges and attorney Shivbir agreed to be suspended from practicing as an attorney on behalf of any publicly traded company or other entity regulated by the SEC. The SEC complaint alleges that the Grewals violated provisions of the Securities Act.