Rakesh Jhunjhunwala, veteran investor (Source: BloombergQuint)

Rakesh Jhunjhunwala Settles Insider Trading Case With SEBI

Billionaire investor Rakesh Jhunjhunwala settled a case with the markets regulator by paying Rs 2.48 lakh.

The Securities and Exchange Board of India had initiated adjudication proceedings against Jhunjhunwala in 2017 for alleged violation of Prohibition of Insider Trading norms in the matter of Geometric Ltd., now part of HCL Technologies.

Under settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

The “settlement order disposes of the adjudication proceedings initiated against the applicant viz Rakesh Jhunjhunwala”, SEBI said in an order dated Friday. Enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Jhunjhunwala is found to be untrue, it said.

Foreign investor Geosphere (Mauritius) Fund also settled a case with SEBI by paying over Rs 24 lakh as settlement charges, according to a separate order.

The regulator had initiated proceedings against Geosphere for alleged violation of foreign institutional and portfolio investor regulations in 2016.

While the adjudication proceedings were initiated, Geosphere submitted an application for settlement of the adjudication proceedings.

Thereafter, SEBI’s high-powered advisory committee recommended the case for settlement on the payment of of Rs 23.98 lakh, which was subsequently approved by the regulator’s panel of whole-time members.