 "Rakesh Jhunjhunwala under Sebi probe for insider trading in 2016: Reports")
Rakesh Jhunjhunwala, the billionaire stock market investor, is under Securities and Exchange Board of India (Sebi) scanner for insider trading in education firm Aptech. Jhunjunwala and his family own majority stake in Aptech, reports The Economic Times.
According to Livemint, the market regulator is examining the time period of February 2016 to September 2016. "The regulator is examining a time frame of February 2016 to September 2016 for irregular trades, which it suspects were done on the basis of insider information", Livemint reported.
Sebi is also investigating the role of other family members, as well as some board members, including investor Ramesh S Damani and director Madhu Jayakumar. Jhunjhunwala's brother and wife, Rajeshkumar Jhunjhunwala and Rekha Jhunjhunwala, are also being probed by market watchdog.
According to Livemint, Jhunjhunwala's brother and wife bought 763,057 shares in the IT firm through block deals on September 7, 2016. With 24.224 per cent stake in it, Aptech is the only company in Rakesh Jhunjhunwala's portfolio where he has management control. The stake is valued at around Rs 160 crore.
In 2005 Jhunjhunwala picked up stake in Aptech for the first time — 10 per cent at Rs 56 per share. He has gradually increased his holding since then. Sebi sent the summons under Section 11 C(5) of the Sebi Act that gives the regulator power to summon individuals and appear before it for any probe.
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