SEBI confirms directions passed against 6 entities in Infosys insider trading case

Further, SEBI has modified its interim order passed in May 2021 to the extent allowing credit and debit of securities in the accounts of entities.

SEBI said that a thorough investigation is pending in this matter.

“In the light of the fact that the procurement and communication of UPSI has not been completely ruled out at this stage, it would not be appropriate to completely remove all restrictions on Entity No. 1 to 5 and 8 and it is a call that matters.” be suitable for a phase out after completion of thorough investigation,” SEBI said in a confirmation order.

Pranshu Bhootra, Amit Bhootra, Bharat C. Jain, Capital One Partners, Tesora Capital and Venkata Subramaniam VV Pranshu Bhutra are Senior Corporate Counsel for Infosys and Venkata Subramaniam VV is Senior Principal, Corporate Accounting Group of Infosys.

SEBI had conducted an examination in respect of the business activities of two partnership firms – Capital One and Tesora Capital. He traded in Infosys shares in the F&O (futures and options) segment just before the announcement of the quarter’s financial results. Ends on June 30, 2020.

The information relating to financial results was Unpublished Price Sensitive Information (UPSI) and the period between June 29, 2020 to July 15, 2020 was the UPSI period.

Being a nominee, Venkat was expected to have access to and be in possession of the UPSI. Apart from being associates, Pranshu and Venkat were also in frequent contact.

Amit Bhutra and Bharat C. Jain are working partners of Capital One and Amit is also working partner of Tesora.

A major part of the case against the entities rests on the fact that Venkat is listed as a nominee who can be expected to have reasonable access to the company’s UPSI.

This prima facie observation along with a series of phone calls from Pranshu to Venkat and then from Pranshu to his cousin Amit, before trades executed by Capital One and Tesora, bound to give rise to a genuine suspicion based on insider trading. Was. Sebi stated that the preponderance of possibilities caused by a range of connections and activities involving various entities.

Through its interim order banning the eight entities till further orders, the watchdog had also directed forfeiture of illegal gains of value. ₹3.06 crore from two of them – Capital One Partners and Tesora Capital.