SEBI Seizes ₹2.6 Crore from Insider Trading in Infosys, Bars Two for a Year

As per news reports, the Securities and Exchange Board of India (SEBI) has barred two individuals from the securities market for one year and impounded ₹2.6 crore in alleged illegal gains from insider trading in Infosys Ltd stock. The individuals, Keyur Maniar and Ramit Chaudhari, have also been fined ₹30 lakh each, with the amount payable within 45 days.

As of today, February 3, 2025, 3:01 PM, Infosys Ltd shares are trading at ₹1,861.90, up ₹10.55 (0.57%) today, showing a 6.28% increase over the past six months and a 10.35% rise over the past year.

Unusual Trading Activity Detected

SEBI flagged suspicious trading patterns in Infosys stock around July 14, 2020, when the company announced its partnership with Vanguard. The regulator suspected that certain traders had access to unpublished price-sensitive information (UPSI) before the announcement and initiated an investigation.

Findings from the Investigation

SEBI’s probe found that Chaudhari, a former Infosys employee, had access to inside information about the Vanguard partnership before it became public. He allegedly passed on this information to Maniar, who then traded in Infosys stock and made profits before the deal was officially announced.

Initial Restrictions and Legal Challenges

On September 27, 2021, SEBI issued an ex-parte order restraining both individuals from buying, selling, or dealing in any securities. They were also directed to deposit their trading profits into an escrow account. The two later challenged the SEBI order before the Securities Appellate Tribunal (SAT).

SAT’s Ruling and SEBI’s Final Order

SAT reviewed the case and allowed SEBI to keep the alleged gains in escrow but set aside the restrictions on trading. However, SEBI continued its proceedings, and in its latest order, Maniar has been asked to return the ₹2.6 crore with 12% annual interest from July 2020. Both have been barred from trading for a year.

Penalty and Market Ban

Along with the market ban, a penalty of ₹30 lakh each has been imposed on Maniar and Chaudhari, to be paid within 45 days. The case remains under SEBI’s purview, with the funds kept in escrow until further developments.

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