Big bull Rakesh Jhunjhunwala is under SEBI scanner on insider trading charges in family-owned firm Aptech, media reports said.
Big bull Rakesh Jhunjhunwala is under SEBI scanner on insider trading charges in family-owned firm Aptech, media reports said. The capital markets regulator has served the summons to the billionaire investor who is being investigated along with some other family members who are also shareholders in the education firm, The Economic Times and the Mint reported citing unidentified sources. Rakesh Jhunjhunwala holds just over a 24 percent stake in Rs 160-crore worth Aptech Ltd. The education firm is the only investment in Rakesh Jhunjhunwala’s portfolio in which he holds management control. It was in the year 2005 that Rakesh Jhunjhunwala bought an equity stake in Aptech for the first time. He picked up 10 per cent stake at Rs 56 per share.
Aptech shares were trading at Rs 164.50, down 8.95 points, or 5.16 per cent on NSE. The major investments of Rakesh Jhunjhunwala, who is also known as Warren Buffett of India for his stock-picking ability, include Titan, Lupin and Crisil. The ace investor was in the news recently for making an investment offer to the YES Bank. Rakesh Jhunjhunwala, along with his wife Rekha Jhunjhunwala, is the promoter of the privately owned stock trading firm Rare Enterprises. He has time and again expressed confidence in India’s stocks, capital markets, and the nation’s economic potential.
Rakesh Jhunjhunwala had recently told CNBC TV-18 in an interview that the ongoing phase of weakness would pass away soon, and that the economic scenario of the country is not as bad as some of the people are making out. He had also said that the government should take steps to remove fear in the business community. Rakesh Jhunjhunwala, a Chartered Accountant by qualification, is known to have a portfolio worth over Rs 15,000 crore, mostly in Indian equities.
Insider trading is known as the trading of a public company’s stock or other securities including bonds or stock options based on material, nonpublic information about the company. In India, it is considered illegal.