Billionaire stock market investor Rakesh Jhunjhunwala is being probed by the Securities and Exchange Board of India for insider trading in education firm Aptech. It is reported that Jhunjhunwala and his family owns a majority stake in the firm.
According to a Livemint report, “the market regulator is examining the time period of February 2016 to September 2016 for irregular trades, which it suspects were done on the basis of insider information.”
SEBI is also investigating other family and board members including investor Ramesh S Damani and Director Madhu Jayakumar for their alleged involvement. Jhunjhunwala’s brother and wife, Rajeshkumar Jhunjhunwala and Rekha Jhunjhunwala, are also being probed by the regulator.
Jhunjhunwala’s brother and wife bought 763,057 shares in Aptech through block deals on September 7, 2016. With a 24.224% stake in it, Aptech is the only company in Rakesh Jhunjhunwala’s portfolio where he has management control. His stake is currently valued at around ₹160crores.
Jhunjhunwala made an investment in Aptech for the first time in 2005 when he bought 10% shares at ₹56/share. Since then he has been gradually increasing his stake in the company. SEBI has sent summons under Section 11 C(5) of the SEBI Act that gives authority to the market regulator to summon individuals and appear before it for any probe.
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