Sebi fines Jhunjhunwala company Aptech Rs 1 crore


2021-04-28 22:30:00

MUMBAI: Markets regulator Sebi on Wednesday penalised edtech company Aptech Rs 1 crore for non-disclosure of price sensitive information in a case dating back to mid-2016. The order relates to Aptech’s entry into the pre-school segment as a business venture and the company’s failure to impose a no-trading rule by its insiders when the negotiations were on. This allowed some of the insiders to make illegal gains, Sebi said.
The Sebi order also mentioned that 11 people, who were designated as insiders, and their relatives together had made unlawful gains aggregating Rs 12.7 crore because of the non-disclosure by the company.
Although the Sebi order doesn’t mention it, in this same case billionaire investor Rakesh Jhunjhunwala was also sent a show-cause notice for alleged illegal gains.
Reportedly, Jhunjhunwala — the promoter of the company with a 48.5% stake — filed a consent plea with Sebi to settle the case by paying a fine.
In its order, Sebi said had Aptech “effectively used the trading window mechanism as an instrument for preventing insider trading by the designated persons and their immediate relatives who are ‘insiders’, such wrongful gain made by them could have been averted”.

FacebookTwitterLinkedinEMail



Source link

Leave a Reply