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Rakesh Jhunjhunwala under Sebi probe for insider trading in 2016: Reports

The billionaire investor is being probed for insider trading in education firm Aptech, according to reports

BS Web Team 

Markets may correct in the short term. But in a bull market the correction is always sharp, swift and short-lived: Rakesh Jhunjunwala

Rakesh Jhunjhunwala, the billionaire stock market investor, is under (Sebi) scanner for in education firm 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.

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, 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 for the first time — 10 per cent at Rs 56 per share. He has gradually increased his holding since then. sent the summons under Section 11 C(5) of the Act that gives the regulator power to summon individuals and appear before it for any probe.

First Published: Tue, January 28 2020. 08:10 IST
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