SEBI finds insider trading in Infosys shares, impounds bank accounts

In the very competitive environment of capital markets, many companies are being barred from trading are being given 21 days to register objections against the order. Infosys Ltd is one such company. The market regulator from the Securities and Exchange Board of India (SEBI) has uncovered 2 employees of Infosys Ltd guilty of infringing the insider trade regulations during the companies last stock year. The investigation conducted by SEBI found the senior corporate counsel of Infosys, Pranshu Bhutra, and the senior principal corporate accountant, Venkata Subramaniam to have applied insider information to trade.

Accomplice to Venkata Subramaniam and Pranshu Bhutra were 6 other entities that have been barred from the capital markets and have been given 21 days to file objections against the order. It is presumed that the 6 entities have made illegal profits of ₹3.06 crores based on the information that was provided to them by Bhutra and Subramaniam, said SEBI.

SEBI stated that Venkata Subramaniam is a designated person in Infosys Ltd, and was expected to have insider information that was price sensitive which was then passed onto Bhutra over a phone call.

The investigation carried on by SEBI also found Bharath Jain, one of the partners of Capital One. Capital One and Tesora Capital had traded in the futures and options section just before the announcement of the financial results of that quarter-end and shortly after got rid of their positions.

SEBI has placed a ban on Pranshu Bhutra, Amit Bhutra, Bharath C Jain, Capital One Partner, Tesora Capital, and Venkata Subramaniam from using the securities market. Moreover, it has ordered bank accounts of Capital One Partners, Amit Bhutra, and Bharath Jain to be appropriated. Lastly, the SEBI regulator also ordered that the companies associated with insider trading to transfer all profits made from the trade into an escrow account affiliated with a nationalized bank.

 

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