Rakesh Jhunjhunwala pays Rs 2.5 lakh to settle insider trading case
The regulator had initiated adjudication proceedings against Jhunjhunwala in 2017 for alleged violation of PIT (Prohibition of Insider Trading norms) in the matter of Geometric Ltd, now part of HCL Technologies.
Under the 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," Securities and Exchange Board of India (Sebi) said in an order dated Friday.
It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Jhunjhunwala is found to be untrue.
The regulator had initiated adjudication proceedings against Geosphere for alleged violation of FII (Foreign Institutional Investors) and FPI (Foreign Portfolio Investors) 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 the consolidated amount of Rs 23.98 lakh, which was subsequently approved by the regulator's panel of whole-time members, following which it remitted the amount and accordingly proceedings were disposed of by Sebi.
(With inputs from agencies.)
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