Rakesh Jhunjhunwala, others settle Aptech insider trading case with Sebi

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Ace equity investor Rakesh Jhunjhunwala, his wife Rekha and seven others, including Utpal Sheth and Ramesh Damani, have settled a case related to insider trading in the shares of Aptech. Market regulator Securities and Exchange Board of India (Sebi) said that Jhunjhunwala paid around Rs 9.51 crore as a settlement amount. This included Rs 5.87 crore towards the disgorgement of ill-gotten gains and interest of Rs 3.10 crore. Likewise, Rekha Jhunjhunwala paid around Rs 1.58 crore as settlement charges, disgorgement of ill-gotten gains and interest charges. Ramesh Damani and Utpal Sheth paid around Rs 3.03 crore and 52.95 lakh.

The other individuals who settled the case are Rajeshkumar Jhunjhunwala, Shushiladevi Gupta, Sudha Gupta, Ushma Seth Sule, Madhu Vadera Jayakumar and Chugh Yoginder Pal.

The latest shareholding data of Aptech showed that Rajeshkumar Radheyshyam Jhunjhunwala held 27.72% stake in Aptech as of March 31. Others including Gopikishan Shivkishan Damani, Rekha Jhunjhunwalam Rakesh Jhunjhunwala and Sushiladevi had 0.61%, 3.09%, 11.25%, 12.53% and 0.25%, respectively.

Sebi in its order said that Aptech after the market hours on September 7, 2016 made an announcement on the platform of the stock exchanges titled “Aptech Forays into Preschool Segment”. The said information was considered as Unpublished Price Sensitive Information (UPSI) and the period of UPSI was March 14, 2016 to September 07, 2016.

Background

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. Accordingly, the proceedings were initiated against the applicants.

In the order, Sebi said, “pending enforcement proceedings for the alleged defaults …are settled qua the applicants”.

Other individuals including Madhu Vadera Jayakumar, Chugh Yoginder Pal paid Rs 82.17 lakh and Rs 66.93 lakh, respectively. On the other hand, Rajeshkumar Jhunjhunwala, Sudha Gupta, Sushiladevi Gupta and Ushma Sheth Sule paid Rs 1.21 crore, Rs 50 lakh, Rs 80.73 lakh and Rs 52.95 lakh, respectively, settlement charges, disgorgement of ill-gotten gains and interest charges.