INSUBCONTINENT EXCLUSIVE:
The preliminary investigation pointed to violations of the regulator's insider trading norms by various entities | SEBI | (Photo:
Shutterstock)3 min read Last Updated Sep 09 2024 | 8:19 PM IST
Sebi on Monday lifted restrictions imposed on 16 entities, including some
former employees of Infosys, in a case pertaining to alleged insider trading activities in IT major shares.
The regulator also directed
that the prohibition slapped on six entities -- Amit Bhutra, Bharath C Jain, Capital One Partners, Tesora Capital, Manish C Jain and Ankush
Bhutra -- through the interim order, along with the confirmatory order, will stand vacated with immediate effect, bringing an end to the
matter.
"I deem it fit to vacate the directions issued vide the interim order read with confirmatory order against noticees 2 to 7 and
already been quashed by the SAT vide its order dated April 25, 2022," Sebi's whole-time member Ashwani Bhatia said in the 57-page final
order.
The case originated after Sebi identified suspicious trading patterns around the financial results announcements of Infosys for
four quarters, covering from December 2019 to September 2020.
The preliminary investigation pointed to violations of the regulator's
insider trading norms by various entities.
In its interim order in May 2021, Sebi imposed restrictions on several individuals and
entities, including Pranshu Bhutra, Amit Bhutra, Bharath Jain, and other entities, prohibiting them from securities markets.
Pranshu
Bhutra was senior corporate counsel of Infosys and Venkata Subramaniam VV was senior principal, corporate accounting group, Infosys, while
Capital One and Tesora Capital were the two partnership entities.
Thereafter, Sebi issued a show cause notice to Bhutra alleged to have
access to unpublished price-sensitive information (UPSI) because of his frequent interactions with Subramaniyam and Sunil Kumar
Dareshwar.
It was also alleged that Pranshu Bhutra had passed the UPSI to Amit Bhutra who then passed this information to the other
noticees.
Sebi's WTM Bhatia said the material available on record is not sufficient for sustaining the allegation that Venkat had
communicated the UPSI to Pranshu.
"Once the allegations against Pranshu that he had access to UPSI fail, the allegation that Pranshu had
communicated the UPSI to Ankit Bhutra cannot be sustained
As a consequence of the same, the allegations against all other noticees do not stand," he added.
In addition, the markets regulator noted
that the orders against Noticees 1 and 8 -- Pranshu Bhutra and Venkata Subramaniyam VV -- had already been quashed by the Securities
Appellate Tribunal (SAT) on April 25, 2022.
Further, the regulator acknowledged the SAT's decision and included this in its final ruling
and directed that any funds impounded from Noticees 2 to 7, which were deposited in escrow accounts pursuant to the interim orders, should
be released along with any accrued interest.
With the disposal of the case, no further actions or penalties will be imposed on any of the
16 noticees.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is
auto-generated from a syndicated feed.)First Published: Sep 09 2024 | 8:19 PMIST
