The Securities and Exchange Board of India (Sebi) has banned eight entities from buying, selling, or dealing in securities after they were held guilty of insider trading on Infosys stock.
"Rs 3.06 crore of illegal gains has been impounded," Sebi said.
These eight entities and individuals are: Pranshu Bhutra, Amit Bhutra, Bharat C Jain, Manish Champalal, Ankush Bhutra, Amit Bhutra, Capital One and Tesora.
"Capital One and Tesora had traded in the scrip of Infosys in the F&O segment just prior to the announcement of financial results for the quarter ended June 30, 2020, and soon after the announcement, offloaded/squared off their positions such that net positions were zero. Amit and Bharath, both had placed orders/given trading instructions on behalf of Capital One. Amit had placed orders/given trading instructions on behalf of Tesora. Thus, Capital One and Tesora had traded in the scrip of Infosys in the F&O segment while in possession of UPSI," the market regulator said.
"It is observed that Capital One and Tesora had significant trading activity in the scrip of Infosys only during the weeks adjacent/close to the dates of corporate announcement of financial results for the quarters ended December – 2019, March – 2020, June – 2020 and September 2020, it said.
According to Sonam Chandwani, the Managing Partner at KS Legal and Associates, Sebi has once again proved its efficiency by discovering the illegal gains made by Tesora Capital and Capital One along with their founding partners.
"This kind of strong vigilance is the need of the hour in the current market to protect the small-time investors and SEBI has played its role to perfection this time around," she said.
Meanwhile, Infosys said that it has a well-defined code of conduct covering all its employees and an insider trading policy that governs dealing with unpublished price-sensitive information.
"The company will, hence, extend full cooperation as required to SEBI on the matter. Additionally, as a result of the order, an internal investigation is being initiated and appropriate action will be taken on the conclusion of such investigation," it added.