02 Jun , 2021 By : Kanchan Joshi
Infosys on Tuesday said it will initiate an internal investigation into an insider trading matter after markets regulator Sebi barred two of its employees from the securities market in the case.
Market regulator Securities and Exchanges Board of India (Sebi) on Tuesday banned Infosys' senior corporate counsel Pranshu Bhutra and Venkata Subramaniam V. V Senior Principal, Corporate Accounting Group along with six other related entities from accessing capital markets until further orders for insider trading.
The entities have traded in the scrip of Infosys while in possession of Unpublished Price Sensitive Information (UPSI) pertaining to Infosys' financial results for the quarter ended June 30, 2020, Sebi said in an interim order passed on Monday.
"On June 1, Infosys was informed of an interim ex-parte Sebi order where two of its employees, amongst other third parties have been named, in an ongoing insider trading investigation. The company will extend full cooperation as required to Sebi on the matter," Infosys said in a statement on Tuesday.
As a result of the order, an internal investigation is being initiated and appropriate action will be taken on conclusion of such investigation, it added. Infosys also said that it has a well-defined Code of Conduct covering all its employees and an Insider Trading Policy that governs dealing with UPSI.
“There is ample prima facie evidence which demonstrates that entities have been in violation of SEBI Act and Prohibition of Insider Trading ( PIT) Regulations. This has not only violated the integrity of the market but also prima facie resulted in undue benefit to them over general investors" the Sebi order said.
The order came after the Securities and Exchange Board of India (Sebi) alert system had generated insider trading alerts for the scrip of Infosys for the period around July 15, 2020 i.e. around the corporate announcement of audited financial results of the company for the quarter ended June 30, 2020.
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