Markets regulator Securities and Exchanges Board of India (Sebi) on Tuesday banned Infosys Ltd’s senior corporate counsel Pranshu Bhutra and Venkata Subramaniam V.V., senior principal, corporate accounting group, along with six related entities, from accessing the capital markets until further orders for insider trading.
A Sebi order by whole-time director Madhabi Puri Buch said that the Infosys officials leaked unpublished price sensitive information (UPSI) about the company’s audited financial results for the quarter ended 30 June 2020, which resulted in ill-gotten gains for those involved.
“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" the Sebi order said. The discussion in the aforesaid paragraphs has shown that the prima facie insider trading activities of the entities has not only caused loss to the investors (notional monetary loss) but also has a prima facie potential to cause irreparable injury to the securities market, the order said.
In its investigation, Sebi found that Pranshu Bhutra was connected to Amit Bhutra via frequent telephonic conversations. Sebi said that Pranshu had a fund transaction with Mahrishi Alloys Pvt. Ltd and soon thereafter Mahrishi had a fund transaction with Shyama Devi Bhutra (mother of Amit) and Ram Bilas Bhutra (father of Pranshu).
Likewise, it was noted that Venkata Subramaniam, who had access to the unpublished information, was in frequent communication with Pranshu during the UPSI period. Thus, Pranshu is also reasonably expected to have access to the UPSI through Venkata and on a preponderance of probability basis, he was in possession of the UPSI, said the Sebi order.
