The Securities and Exchange Board of India (SEBI) has concluded its investigation into allegations of insider trading involving former Infosys employees and associated entities. On Monday, the regulator lifted restrictions imposed on 16 entities, including some former employees of the IT giant.
The case stemmed from suspicious trading patterns observed around Infosys’ financial results announcements between December 2019 and September 2020. SEBI’s preliminary investigation indicated potential violations of insider trading regulations by various entities.
Among those implicated were Pranshu Bhutra, a former senior corporate counsel at Infosys, and Venkata Subramaniam VV, a former senior principal in the corporate accounting group. The regulator alleged that Bhutra had access to unpublished price-sensitive information (UPSI) due to frequent interactions with Subramaniam and Sunil Kumar Dareshwar. This information was allegedly shared with other individuals and entities involved in the case.
However, SEBI’s investigation ultimately found insufficient evidence to support the allegation that Venkat had communicated the UPSI to Pranshu. Consequently, the allegations against Pranshu and the subsequent chain of information sharing were deemed unsubstantiated.
The regulator also noted that the Securities Appellate Tribunal (SAT) had previously quashed the orders against Pranshu Bhutra and Venkata Subramaniam VV in April 2022. Given these developments, SEBI decided to lift all restrictions imposed on the 16 entities involved in the case.
The regulator’s decision brings an end to the protracted investigation and provides closure for the affected parties. With the disposal of the case, no further actions or penalties will be imposed on any of the 16 noticees.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Enjoy Zero Brokerage on Equity Delivery
Join our 2 Cr+ happy customers