SEBI bans Infosys employee from stock markets on insider trading charges, impounds Rs 2.6 crore – The Financial Express

lipped from: https://www.financialexpress.com/market/sebi-bans-infosys-employee-from-stock-markets-on-insider-trading-charges-impounds-rs-2-6-crore/2340214/

Capital markets regulator SEBI (Securities and Exchange Board of India) has banned an Infosys employee along with an employee of Wipro, on charges of insider trading in the Infosys scrip.

SEBIIn light of the findings, SEBI has banned both Ramit Chaudhri and Keyur Maniar from buying, selling or dealing in securities, until further orders.

Capital markets regulator SEBI (Securities and Exchange Board of India) has banned an Infosys employee along with an employee of Wipro, on charges of insider trading in the Infosys scrip. In the order earlier this week, SEBI noted that Ramit Chaudhri, Solution Design Head at Infosys and Keyur Maniar of Wipro earned Rs 2.6 crore from insider trading in the Infosys stock after the company announced a strategic partnership with Vanguard in July last year. Between July 10 and July 31 last year, Infosys share price soared nearly 20% higher.

SEBI in its order said that Ramit Chaudhri was directly/indirectly associated with the Infosys-Vanguard deal. Being an employee of Infosys he is termed as a connected person and was reasonably expected to have access to the UPSI (Unpublished price sensitive information). The market watchdog further noted that Ramit Chaudhri and Keyur Maniar were connected through frequent telephonic communication both had earlier worked together in Wipro BPS during the period from March 2012 to December 2014.

The market regulator highlighted that while Ramit Chaudhri was in talks with Vanguard on behalf of Infosys, Keyur Maniar was doing the same on behalf of Wipro. SEBI added that Ramit had used both his mobile numbers to communicate with Keyur. “… based on the preponderance of probability, it is prima facie found that Keyur has procured the UPSI from Ramit; and that Ramit has communicated the UPSI to Keyur,” SEBI said.

“Keyur had traded in the scrip of INFY in the F&O segment just prior to the announcement of the Vanguard deal and soon after the announcement, subsequently offloaded/squared off his positions such that net positions were zero,” Sebi said in its order. The trades helped Keyur Maniar make Rs 2.61 crore in a matter of days. The trading activity in his account, SEBI said, was not normal. 

In light of the findings, SEBI has banned both Ramit Chaudhri and Keyur Maniar from buying, selling or dealing in securities, until further orders. The market watchdog will also impound Rs 2.6 crore from the bank accounts of both parties and keep the same in an escrow account. Further, The banks Ramit Chaudhri and Keyur Maniar are holding bank accounts, jointly or severally, have been directed to ensure that till further directions, no debits are made in their accounts without the permission of the market regulator.mail logo

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