Sebi restrains 2 Infosys, Wipro employees from securities market

regulator has restrained an employee and his connected person, who is an employee of Ltd, from the securities market till further orders in a matter related to alleged insider trading in shares.

The market regulator has also directed impounding of illegal proceeds of Rs 2.62 crore, according to a order dated September 27.

The alert system of had generated insider trading alerts for Infosys’ scrip around the corporate announcement about the strategic partnership of with Vanguard.

The information related to the deal was UPSI and the UPSI period was from June 29, 2020 to July 14, 2020. Ramit Chaudhri, solution design head of Infosys, who was directly/ indirectly associated with the Vanguard deal is a connected person and was reasonably expected to have access to the UPSI and on preponderance of probability basis prima facie he was in possession of the UPSI.

Keyur Maniar who is currently working as Senior VP and Country Head (MD) with Wipro, is connected to Ramit.

Keyur had traded in the scrip of Infosys in the F&O segment just prior to the announcement of the Vanguard deal and soon after the announcement, subsequently offloaded/squared off his positions such that net positions were zero.

Therefore, they prima facie violated Prohibition of Insider Trading norms. Proceeds of Rs 2,62,30,620 were generated through the insider trading activities.

“Preventive directions against them are essential to stall the impending danger to investors that in future Ramit and Keyur through their personal, social and corporate network might procure/communicate/misutilise UPSI pertaining to various companies including but not limited to INFY and Wipro; and might continue to engage in similar modus operandi by playing varying roles in various other companies,” Sebi said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Share Market Today