SEBI(Securities Exchange Board of India) has banned high profile employees of WIPRO and Infosys for alleged insider trading incident. SEBI issued an order against Ramit Chaudhri of Infosys and Keyur Manair of WIPRO, on September 27. Both of them cannot trade in the stock exchange till further notice.
SEBI linked the case to a strategic partnership between Infosys and Vanguard that came to surface in July, last year. Infosys-Vanguard deal was worth $1.5 billion, which is probably the Indian tech consulatncy giant’s biggest deal till date. The mammoth deal surged the share prices of Infosys.
As per the orders issued by SEBI, Ramit and Keyur are restrained from buying, selling and dealing in securities till further notice. SEBI added that Ramit “was reasonably expected to have access or be privy to the Unpublished Price Sensitive Information”. Ramit Chaudhri was the Solution Design Head of Infosys. Ramit was accused of sharing the UPSI with WIPRO’S Keyur Manair. The latter “traded in the scrip of Infosys in the F&O segment just prior to the announcement of Vanguard deal”. “Soon after the announcement, he(Keyur) subsequently squared off his positions such that the net positions were zero.” SEBI added.
According to SEBI, Keyur generated proceeds worth Rs. 261.30 lakhs from the trading. the two accused were in touch through frequent telephonic communications. “Ramit used both of his mobile numbers to communicate with Keyur,” SEBI’s order stated.
What is insider trading?
Trading in a public companies stocks or other securities based on material, non-public information about the company. Being the regulatory body of security markets in India, SEBI is responsible to prevent such illegal activities from happening.
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