SEBI bans Alchemy Capital founders from market for a year; levies ₹ 25-lakh penalty in insider trading case

Lashit Sanghvi and his wife, Neha Sanghvi, cofounders of Alchemy Capital Management, have been banned for a year from the securities market by the market regulator Sebi for allegedly engaging in insider trading of Aptech shares.

As per some of the reports, the late Rakesh Jhunjhunwala is said to have given the tip about Aptech's shares. Alchemy Capital Management, an investment management company, was created by Lashit, Late Rakesh Jhunjhunwala, and others. Jhunjhunwala served as the chairman and promoter of Aptech.

Total fines of Rs 25 lakh

Both people received fines totalling Rs 25 lakh from the industry watchdog, the Securities and Exchange Board of India, which also forbade them for two years from dealing in Aptech's securities.

Sebi's investigation revealed that Jhunjhunwala had UPSI, and it informed Lashit of this information over the phone.

Sebi's order

"Lashit Sanghvi in communicating the UPSI to his wife as well as acts of both of them to execute the trades in the scrip of Aptech during the UPSI period were in the nature of insider trading, leading to accrual of notional gains. Thus, the charges of insider trading have been established against the noticees," Sebi's whole-time member S K Mohanty said in the order.

Lashit and Neha earned profits of Rs 49.87 lakh and Rs 49.84 lakh, respectively, in respect of their trades in the scrip during the investigation period.

(With inputs from agencies)