InvestorQ : What are steps were taken by SEBI on Infosys Insider Trading and who all was involved?
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What are steps were taken by SEBI on Infosys Insider Trading and who all was involved?

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Manish Mehta answered.
3 weeks ago
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Well, in recent news it was found out that SEBI has banned eight individuals and companies from trading in the market, all of them associated with Infosys. SEBI has also put a penalty of 3.06 crore on all of them for indulging in insider trading. These eight individuals and entities are Amit Bhutra, Pranshu Bhutra, Venkata, Manish Champalal, Bharat C Jain, Ankush Bhutra, Tesora, and Capital One.

According to the reports, Capital One and Tesora Capital had illegally gained Rs 2.795 crore and Rs 26.82 lakhs by indulging in insider trading. It happened right before the financial results for the quarter ended June 30, 2020, by trading in the F&O with UPSI and squaring the position soon after the results were announced.

Thus, the two companies traded in the scrips of Infosys in F&O while they were in possession of Unpublished Price Sensitive Information (UPSI). It was observed that companies engaged in trading only near the dates of corporate announcement of the financial results of the quarter December 2019, March 2020, June 2020, and September 2020.

Amit and Bharath are working partners of Capital One, while, Amit, Ankush, Manish Champalal Jain are working partners of Tesora. Venkata Subramaniam, senior principal of corporate accounting, Infosys is also said to be an insider who had frequent communications with Pranshu, so Pranshu is also deemed to be an insider.

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