Atul and Rahul Kirloskar have been found guilty of insider trading by former Supreme Court judge BN Srikrishna in a probe ordered by the market regulator Securities and Exchange Board of India (Sebi), Business Line reported.

It is alleged that on October 6, 2010, Gautam Kulkarni, Rahul Kirloskar, Atul Kirloskar, Alpana Kirloskar, Jyotsna Kulkarni and Arti Kirloskar, members of the promoter group sold 1.07 crore shares of KBL, representing 13.51 percent stake in the company to Kirloskar Industries (KIL), to another public limited company managed by the promoter, according to Srikrishna report, seen by BusinessLine.

"I am of the opinion that the transferors namely Rahul Kirloskar, Atul Kirloskar, Gautam Kulkarni are insiders as well as connected persons of KBL," BN Srikrishna said in his report.

When approached by Business Line, KBL declined to comment on the story stating that a related matter was pending before the National Company Law Tribunal (NCLT) and that it was sub judice.