SEBI v. Rakesh Bhojgdhiya and Rakesh Bhojgdhiya HUF (insider trading, Magma Fincorp, 2023)

Settled

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In May 2023 SEBI disposed of insider-trading proceedings against an individual and his Hindu undivided family account over trading in Magma Fincorp before the February 2021 Poonawalla Group announcement. They paid Rs 8,04,25,741 and agreed to disgorge Rs 8,32,80,941 of impounded gains, without admitting or denying the findings.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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Penalty as published

80.4m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

SEBI's whole-time member, Ashwani Bhatia, issued this settlement order on 17 May 2023. The applicants are Rakesh Bhojgdhiya and Rakesh Bhojgdhiya HUF, an entity of the Hindu undivided family type. The shares concerned are those of Magma Fincorp Ltd, later Poonawalla Fincorp Ltd, listed on NSE and BSE.

SEBI alleged that the applicants were insiders who knew of the Poonawalla Group's interest in investing in Magma and traded on that knowledge between 11 January and 10 February 2021, the day Magma announced the Poonawalla Group takeover of control and a Rs 3,456 crore preferential allotment. The alleged violations were of Regulation 4(1) of the PIT Regulations and section 12A(d) and (e) of the SEBI Act. SEBI had restrained them and impounded their accounts by an interim order in September 2021, confirmed with changes in March 2022.

The investigation attributed alleged gains of Rs 3,84,59,373 to Rakesh Bhojgdhiya and Rs 4,40,28,566 to the HUF. After a show cause notice in September 2022 they applied to settle under the 2018 Settlement Regulations.

On the advisory committee's recommendation the settlement terms were Rs 3,74,97,889 from the individual and Rs 4,29,27,852 from the HUF, together Rs 8,04,25,741, plus disgorgement of the already impounded Rs 8,32,80,941 on a joint and several basis. The applicants reported paying in March 2023, and the order closes the show cause proceedings, reserving SEBI's right to act if statements prove false or undertakings are breached.

The settlement was made without admitting or denying the findings, so the order records allegations and agreed terms rather than a determination of guilt. The record does not show how the individual and the HUF were connected beyond the shared name, any criminal case, or any appeal.

This library tags the matter as insider trading. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2023-05-17 SEBI settlement order

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order
• Order (PDF)

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.