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Infosys' Insider Trading Involving An Ex-Employee: SEBI Seizes ₹2.6 Crore and Ban Two

Last year, Infosys CEO and MD, Salil Parekh, had too settled insider trading charges with SEBI. He paid ₹25 lakhs for violating provisions of...
Infosys' Insider Trading Involving Ex-Employee, SEBI Seizes ₹2.6 Crore and Ban Two

The Securities and Exchange Board of India (SEBI) has reportedly banned two individuals, Keyur Maniar and Ramit Chaudhri, for insider trading involving Infosys stock. SEBI has ordered the disgorgement of ₹2.6 crore in illegal gains and imposed a penalty of ₹30 lakh on each of them.

Maniar was found to have traded based on unpublished price-sensitive information (UPSI) related to a strategic partnership between Infosys and Vanguard. Ramit Chaudhri, a former Infosys employee, was fined for passing on this sensitive information.

SEBI issued a final order on January 31, 2025, mandating Keyur Maniar to disgorge over ₹2.6 crore in illegal gains made from insider trading involving Infosys shares. SEBI also imposed a fine of ₹30 lakh on Maniar and banned him from participating in the securities market for one year.

Maniar, an associate of former Infosys employee Ramit Chaudhri, traded based on unpublished price-sensitive information (UPSI) related to a strategic partnership between Infosys and Vanguard. Chaudhri was fined ₹30 lakh and barred from the securities market for a year for passing on the sensitive information.

The partnership between Infosys and Vanguard was announced on July 14, 2020. SEBI's investigation found that Chaudhri had access to inside information about the deal and shared it with Maniar, who then traded in Infosys stock before the announcement.

SEBI's surveillance system detected suspicious trades by the two individuals, leading to an interim order in September 2021, which was later confirmed in December 2021. The case was challenged in the Securities Appellate Tribunal (SAT), which allowed SEBI to keep the alleged unlawful gains in an escrow account until a final decision was made.

In the final order, SEBI directed Maniar to disgorge the illegal gains along with a 12% annual interest from July 2020 until the date of the deposit. Chaudhri, although not found guilty of insider trading, was penalized for disclosing the unpublished information.

Notably, in mid of last year, Infosys CEO and MD, Salil Parekh, had too settled insider trading charges with SEBI. He paid ₹25 lakhs for violating provisions of insider trading, which too was about Infosys and Vanguard partnership. 

Another notable case of insider trading involving Infosys shares occurred in 2020. In this instance, SEBI found that Pranshu Bhutra, a Senior Corporate Counsel at Infosys, and Venkata Subramaniam VV, a Senior Principal in the Corporate Accounting Group, along with six other entities, were involved in insider trading.

The case revolved around Infosys' quarterly results, which were announced on June 29, 2020. The entities traded in the futures and options (F&O) segment before the announcements and made significant gains.

This case, like the recent one, underscores the importance of adhering to insider trading regulations to maintain market integrity. It underscores the importance of market integrity and the consequences of insider trading.
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