SEBI had issued show-cause notices to Jhunjhunwala and Aptech’s board members, querying why action should not be taken against them for security law infringements
Jhunjhunwala and his family own a 49% stake in Aptech Ltd
Ace investor Rakesh Jhunjhunwala has filed a consent appeal with the SEBI (Securities and Exchange Board of India) to settle an alleged insider trading case concerning the shares of education company Aptech Ltd. The case dates back to 2016.
Besides, the billionaire investor, Aptech board members Madhu Jayakumar, Utpal Sheth, and Ramesh S Damani have also filed consent applications with the markets regulator, the Economic Times reported.
Sheth also serves as the CEO of Jhunjhunwala’s asset management company – Rara Enterprises. A consent application is an out-of-court settlement agreement wherein the offender either consents to either pay a pecuniary penalty or voluntarily undergoes a ban from the securities market.
SEBI had issued show-cause notices to Jhunjhunwala and Aptech’s board members, querying why action should not be taken against them for security law infringements, the report added.
The consent procedure comprises multiple states. As these notices are negotiated between the regulator and concerned parties, once the settlement conditions are settled and agreed upon, they are then brought before an independent panel.
Basis the committee’s suggestions, SEBI’s two whole-time members pass the conclusive order, which is obligatory for the applicants to follow.
Sources further told the publication that the regulator is likely to pass the consent order in the Aptech case soon.
Jhunjhunwala and his family own a 49% stake in the education company and it is the only firm in his portfolio over which he exercises management control.
SEBI has been reviewing alleged insider trading deals in Aptech shares that occurred between May and October 2016. JhunJhunwala had earlier appeared before the regulator in this matter.