Choksi Faces Fresh Sebi Heat Over Insider Trading
Sebi has issued a notice to Mehul Choksi demanding he pays Rs 2.1 crore for insider trading violations related to Gitanjali Gems. Absconding from India post a vast bank scam, Choksi, facing arrest in Belgium, might have his assets seized if the fine isn't settled within 15 days.
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The Securities and Exchange Board of India (Sebi) has intensified its crackdown on the fugitive diamantaire Mehul Choksi, demanding payment of Rs 2.1 crore for breaching insider trading rules in the shares of Gitanjali Gems Ltd. A stern warning has been issued, threatening attachment of his assets should he default on the payment in the next 15 days.
Choksi, linked to the prominent fraud at Punjab National Bank with his nephew Nirav Modi, has been untraceable in India since 2018. While Modi remains incarcerated in the UK, Choksi was recently apprehended in Belgium, following India's extradition request. He had been residing in Antigua under the guise of medical treatment.
The fresh Sebi notice dated May 15 outlines penalties of Rs 1.5 crore plus Rs 60 lakh interest. Failure to comply could lead to the seizure of Choksi's properties and bank accounts. Earlier this year, Sebi discovered he disclosed non-public sensitive data to his associate, against PIT regulations and anticipates recovering dues through stringent measures.
(With inputs from agencies.)
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