- Market Regulator SEBI has banned eight entities, including 2 Infosys employees, for alleged indulging in insider trading in the company’s shares.
- Infosys will probe those two employees banned by SEBI.
Infosys said it would set up an internal investigation for an insider trading issue after SEBI has banned 2 Infosys employees from the securities market.
On Tuesday, the SEBI (Securities and Exchange Board of India) barred Senior Corporate Counsel of Infosys, Pranshu Bhutra, Venkata Subramaniam V. V Senior Principal, Corporate Accounting Group, and other six entities from accessing the capital market until further orders.
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What’s the matter –
The alleged entities have traded in the Infosys shares while in possession of Unpublished Price Sensitive Information (UPSI) of the company’s financial results for the quarter ended 30th June 2020, SEBI said in an interim order.
“On 1st June, Infosys was informed by the SEBI about an interim ex-parte order where two of its employees, along with other third parties have been named in an ongoing insider trading investigation.”
Infosys issued a statement and assured to extend full cooperation to SEBI on the matter. After the SEBI passed the order, the company set up an internal investigation to probe and take the required action after the probe’s conclusion. The company also has a well-defined code of conduct for all employees and an Insider Trading Policy that governs dealing with UPSI.
The SEBI order, “There is a lot of prima facie evidence which proves that entities have violated SEBI act and Prohibition of Insider Trading (PIT) Regulations. The action has violated the integrity of the market and resulted in undue benefit to them over other general investors.”
SEBI issued the order after its alert system-generated insider trading alerts for Infosys scrip for the period around 15th July 2020. The same period in which the corporate announcement of audited financial results for the quarter ended 30th June 2020 was made.
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