The former Gunns chairman, John Gay, has pleaded not guilty to two charges of insider trading in the Magistrates Court in Launceston.

The Australian Securities and Investments Commission has accused Gay of disposing of 3.4 million Gunns shares in December 2009.

The value of the shares dropped about 20 cents when half yearly results were released in February 2010.

The commission alleges the 68 year old had inside information he ought to have known wasn’t generally available.

Gay will appear before a Supreme Court trial in April.