JHUNJHUNWALA, OTHERS SETTLE APTECH INSIDER TRADING CASE

He, along with wife, and 8 others pay ~37 crore in Aptech case

Bpillionaire investor Rakesh Jhunjhunwala (pictured), wife Rekha, and eight others have settled a case pertaining to alleged insider trading in shares of Aptech, by agreeing to pay more than ~37 crore. This amount, paid by the 10 individuals, included settlement charges, disgorgement of illgotten gains, and interest charges.

The case was settled under the so-called consent route, through which an alleged wrongdoer can close a pending matter with the markets regulator, Securities and Exchange Board of India (Sebi), without admitting to or denying the charges levelled against them.

The amount paid by Rakesh Jhunjhunwala was ~18.5 crore, of which the disgorgement amount is nearly ~6 crore. Rekha, on the other hand, paid ~3.2 crore.

Aptech board members Ramesh S Damani and Madhu Jayakumar paid ~6.2 crore and ~1.7 crore, respectively.

The matter pertained to dealing in shares of Aptech — of which where Jhunjhunwala and family members are promoters -- while in possession of unpublished price sensitive information (UPSI)

In September 2016, Aptech had announced its foray into the preschool segment. According to the Sebi order, this was a UPSI between March 14, 2016, and September 7, 2016, the date of official announcement.

“It is alleged that Utpal Seth and Rakesh Jhunjhunwala were in possession of the UPSI and communicated the same to other applicants. On the basis of the UPSI, Rakesh Jhunjhunwala, Rekha Jhunjhunwala, Rajeshkumar Jhunjhunwala, Shushila Devi Gupta, Sudha Gupta, and Ushma Seth Sule are alleged to have traded in the scrip of Aptech during the UPSI period,” the Sebi order stated.