Infosys, Wipro Employee Banned From Stock Trading By SEBI: Find Out Why?
A high level employee of Infosys Limited and another ex employee of Wipro Limited have been banned from trading in stock exchanges.
The duo apparently indulged in insider trading in the shares of Infosys Ltd. read on to find out all the details!
SEBI Bans Infosys And Wipro Employees From Trading
Rami Chaudhri of Infosys and Wipro’s former employee Keyur Manair have been banned by the Securities and Exchange Board of India (SEBI) from trading in stock exchanges. As per the order by SEBI, these two have been banned from buying, selling or dealing in securities, either directly or indirectly, till further orders.
The case was related to a strategic partnership between Infosys and Vanguard, a US investment firm, in July last year.
The order states, “If Ramit Chaudhri and Keyur Maniar have any open position in any exchange derivative contracts, as on the date of the order, they can close out/square off such open positions within three months of the date of the order or at the expiry of such contracts, whichever is earlier.”
Rami was the Solution Design head of Infosys and was also associated with the Vanguard deal. It was expected that he would have access or be privy to the Unpublished Price Sensitive Information (UPSI), thus making him an insider.
Accused Generated Proceeds Of Rs. 261.30 Lakh
Rami has been accused of sharing this information with Keyur, who also traded in the scrip of Infosys in the F&O segment before the announcement of the Vanguard deal. After the announcement was made, Keyur offloaded/squared off his positions such that net positions were zero.
As per SEBI, Keyur had generated proceeds of Rs 261.30 lakh in the trading. Apparently, the two had been in touch with each other through frequent telephonic communication.
Recently, in June 2021, SEBI had also banned Infosys executives senior corporate counsel Pranshu Bhutra and Venkata Subramaniam V. V Senior Principal, Corporate Accounting Group and 6 other people from accessing capital markets. They were found guilty of insider trading in an incident where they leaked unpublished price sensitive information (UPSI).
Their actions resulted in gains of Rs 3.06 crore acquired illegally by those involved.
SEBI’s order stated that it had ample evidence to prove that the guilty entities violated the SEBI Act and Prohibition of Insider Trading (PIT) Regulations.
Additionally, SEBI has also increased the reward payable to whistleblowers under its ban on insider trading regulations to Rs 10 crore from Rs 1 crore to further encourage whistleblowers to appear before the regulator.