Jailed billionaire hedge fund founder Raj Rajaratnam's petition seeking reconsideration of his conviction for running one of the biggest insider trading schemes in US history has been rejected by a court in New York.

The United States Court of Appeals for the Second Circuit said in a ruling yesterday that the petition by Rajaratnam for panel rehearing or "for rehearing en banc" is denied.

An en banc hearing would have meant that Rajaratnam's case is heard before a full federal appeals court, instead by a small panel.

The Sri Lanka-born Galleon Group co-founder is currently serving an 11-year prison term after being convicted in 2011 for running one of the biggest insider trading schemes in US history and making over 63 million dollars in illicit profit from 2003 to 2009.