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Rakesh Jhunjhunwala under SEBI scanner over insider trading in Aptech: Report

By  Administrator_India,

Capital Sands

Billionaire investor Rakesh Jhunjhunwala is under the scanner of market regulator Securities and Exchange Board of India (SEBI) over alleged insider trading in Aptech shares.

SEBI is also examining the role of other Aptech board members, including Ramesh Damani and Madhu Jayakumar, The Economic Times reported.

Jhunjhunwala currently holds 24.24 percent stake in Aptech, which is valued around Rs 160 crore. It is the only company in his portfolio in which he has management control.

Jhunjhunwala, his wife Rekha, brother Rajeshkumar and mother-in-law Sushiladevi Gupta were called in for questioning on January 24, the report said.

Jhunjhunwala’s sister, Sudha Gupta was question by the market regulator on January 23, the report added.

“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,” a source told Mint.

Insider trading usually involves trading in shares of a company based on non-public information. But non-publishing of price-sensitive information is also considered by SEBI as insider trading.

Jhunjhunwala’s office said he and his wife have ‘no comments’ to offer when approached by ET.

Jhunjhunwala first purchased a 10 percent stake in Aptech in 2005, at Rs 56 per share. He usually invests in equity through his company Rare Enterprises.