SEBI finds Insider Trading in Shares of Infosys Limited [Read Order]

SEBI - insider trading - shares - Infosys - Taxscan

The Securities and Exchange Board of India (SEBI) issued the Interim Order in the matter of insider trading in shares of Infosys Limited.

The SEBI in its ex-parte interim order, has detailed the insider trading activity in Infosys’ shares around July 15, 2020, prior to the announcement of quarterly financial results. The information on Infosys’ financial results was unpublished price-sensitive information between June 29 and July 15, 2020. During this period, entities connected to Bhutra had traded in Infosys’ shares in the F&O segment.

The Regulatory Authority said that the entities have traded in the script of Infosys while in possession of Unpublished Price Sensitive Information (UPSI) pertaining to Infosys’ financial results for the quarter ended June 30, 2020.

On June 1, Infosys was informed of an interim ex-parte SEBI order where two of its employees, among other third parties have been named, in an ongoing insider trading investigation.

The order said that there is ample prima facie evidence that 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.

As a result of the order, an internal investigation is being initiated and appropriate action will be taken on the 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.

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