Aptech insider trading case | Rakesh Jhunjhunwala files consent application with SEBI: Report
Rakesh Jhunjhunwala holds a 49 percent stake in the education company.
February 06, 2021 / 12:00 PM IST
Billionaire investor Rakesh Jhunjhunwala has filed a consent application with the Securities and Exchange Board of India (SEBI) regarding an alleged insider trading case related to Aptech Ltd, reported The Economic Times quoting unnamed sources privy to the matter.
According to the report, Utpal Sheth, who is the CEO of Jhunjhunwala’s asset management firm Rare Enterprises and board member of the education company, has also filed the consent application with the regulator.
Ramesh S Damani and Madhu Jayakumar are the other two board members who are said to have filed the application with SEBI. The report suggests that the company has been under SEBI's scanner since 2016 for alleged insider trading between May and October 2016.
Moneycontrol could not independently verify the report.
Under SEBI guidelines, consent applications are filed over security violations but are settled outside court. The terms are negotiated between the concerned entities and the regulator without admission of guilt or denial of liabilities. The application also requires a fee.
The terms of the settlement are presented before an independent advisory committee. Based on its recommendations, a final order is passed by SEBI’s two whole-time members. According to the report, SEBI is expected to pass its order in relation to the Aptech case soon.
Earlier, the regulator had served a show-cause notice to Jhunjhunwala and Aptech board members.
Jhunjhunwala holds a 49 percent stake in the education company. He is said to have first invested in Aptech in 2005 at a price of Rs 56. The stock closed at Rs 216 on February 5.