InvestorQ : Can you tell me more about the latest Rakesh Jhunjhunwala investigation that SEBI is conducting on charges of insider trading?
shrinidhi Rajan made post

Can you tell me more about the latest Rakesh Jhunjhunwala investigation that SEBI is conducting on charges of insider trading?

Answer
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Riya Dwivedi answered.
9 months ago


The case on Rakesh Jhunjhunwala that you are referring to actually dates back to the year 2016. He is under the SEBI scanner for insider trading in Aptech Ltd, where his family owns a majority stake. In fact, SEBI is currently examining the trades of RJ and his family for the period between February 2016 and September 2016. The focus is currently on any irregular trades, which SEBI believes were done on the basis of insider information.

Incidentally, the probe has been expanded to investigate the role of other family members and associates including some board members including Ramesh Damani and director Madhu Jayakumar. Jhunjhunwala's brother and wife, Rajeshkumar Jhunjhunwala and Rekha Jhunjhunwala, are also being probed by the regulator. According to reports, Rakesh Jhunjhunwala's brother and wife bought 763,057 shares in Aptech Ltd through block deals on September 7, 2016. This was apparently based on some insider information that had not been still made public and which insiders had access to.

It may be recollected that Jhunjhunwala had picked up this stake in Aptech in 2005 for a price of Rs.56 per share. The order will be passed only on the completion of the probe.