You are here: Home » Markets » News
Business Standard

Aptech slips 4% on reports of Sebi probe against Rakesh Jhunjhunwala

Sebi 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, reports said.

SI Reporter  |  New Delhi 

Aptech slips 4% on report Sebi probes Jhunjhunwala on insider trading in Co
Rakesh Jhunjhunwala has management control over the company

slipped around 4.5 per cent in early trade on Tuesday, after reports suggested Rakesh Jhunjhunwala, the billionaire stock market investor, is being probed by the market regulator Securities and Exchange Board of India (Sebi) in case of alleged insider trading in shares of the education firm. According to the latest shareholding pattern, Jhunjunwala along with his wife Rekha, own 24.24 per cent stake in the company. CLICK TO VIEW SHAREHOLDING PATTERN

After a knee-jerk reaction, the stock recovered partially and was trading 2.5 per cent lower at Rs 169 apiece at 09:37 am. The cunter hit a low of Rs 165.55 in intra-day trade, down 4.5 per cent against previous close of Rs 173.40. In comparison, the S&P BSE Sensex was trading around 101 points or 0.25 per cent higher at 41,256 levels.

Geojit Financial Services, however, was quoting over 2 per cent higher at Rs 28.85 levels on the BSE in morning trades. While the role of the company is not yet clear in the scheme of things, officials from the company had been summoned by the market regulator along with in connection with insider trading, the Economic Times report suggested.

“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," business daily Mint reported quoting sources.

When shares of a company are bought or sold basis some confidential or non-public information, the practice is known as insider trading. Under Sebi’s insider trading norms, communication of unpublished price-sensitive information is also considered a violation, the report added.

Besides, Jhunjhunwala, Sebi is also investigating the role of other family members who are shareholders, as well as some board members, including investor Ramesh S Damani and director Madhu Jayakumar, The Economic Times reported citing sources.

Jhunjhunwala first picked up a 10 per cent stake in in 2005 at Rs 56 apiece and has gradually raised his holding. He last increased his stake in the company by 0.19 per cent in February 2019. is the only company in Jhunjhunwala’s portfolio in which he has management control. He is a passive shareholder in the other companies, reports said.

First Published: Tue, January 28 2020. 09:55 IST
RECOMMENDED FOR YOU