Infosys begins internal probe after SEBI order on two employees involved in insider trading

on Tuesday said that it has begun an internal investigation after the Securities and Exchange Board of India passed an order restraining eight entities, including two of the company’s employees, from trading in the stock market on insider trading allegations.

Infosys senior corporate counsel Pranshu Bhutra and senior principal Venkata Subramaniam V V were barred from accessing the securities market after investigating insider trading in the shares of India’s second most valued IT company last year.

The regulator has directed six of the entities who traded based on inside information provided by the two individuals and directed to impound Rs 3.06 crore of illegal gains from the transaction.

“On June 1st, Infosys was informed of an interim ex-parte SEBI Order where two of its employees, amongst other third parties have been named, in an ongoing insider trading investigation. Infosys has a well-defined Code of Conduct covering all its employees and an Insider Trading Policy that governs dealing with unpublished price sensitive information.,” a Infosys spokesperson said in a statement.

“”The company will 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 said.

Capital One and Tesora Capital had traded in Infosys scrip in the futures and options segment ahead of the company’s announcement of its financial results for the quarter that ended June 30, 2020, and soon after the announcement offloaded these positions.