Infosys: Market regulator SEBI has given a big relief to Infosys on Monday. The charges of insider trading against Infosys employees and their associated companies have been dropped. Along with this, the money seized from these companies has been returned. These companies associated with Infosys employees were accused of earning this money through insider trading.
Some Infosys employees and their associated companies were accused of insider trading
SEBI has announced the lifting of the ban in its new order. Market regulator SEBI had taken action against some employees of Infosys and their associated companies through an interim order in the year 2021. They were accused of making profits from insider trading. SEBI has said in its final order that action against all those to whom notices were sent is now being stopped. Also, any amount seized from those entities will also be released.
In the year 2021, the money of these employees and their companies was confiscated
Infosys had to face many problems due to allegations of insider trading. SEBI had investigated the results of four quarters from December 1, 2019 to November 30, 2020 to detect insider trading. Apart from this, SEBI had also investigated the results of many quarters. After this, by issuing an interim order in May 2021 and another order in December 2021, the money of these employees and their companies was confiscated.
Two employees had gone to SAT against SEBI’s order
Against this, two Infosys employees Pranshu Bhutra and Venkatasubramaniam VV had filed a petition in the Securities Appellate Tribunal (SAT). SAT had stayed the order of SEBI in April 2022. In the investigation conducted after this, show cause notices were issued to 16 notice recipients including Pranshu Bhutra and Venkatasubramaniam VV. It was said that Pranshu Bhutra collected price sensitive information and passed it on to others due to his proximity to Venkatasubramaniam and Sunil Kumar Dareshwar. However, now there is not enough evidence to confirm this in the final order.
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