SAT LIFTS SEBI CURBS OVER INFOSYS’ INSIDER TRADING CASE

MUMBAI: The Securities Appellate Tribunal (SAT) lifted restrictions imposed by the Sebi in its order pertaining to alleged insider trading by Infosys staff. This comes after some employees of Infosys filed an appeal before the tribunal questioning Sebi’s order of 15 September 2021 confirming the regulator’s 31 May 2021 order that restrained the employees of Infosys from buying or selling any securities of Infosys till further orders.

“When only prima facie observations are being made which the appellant has sufficiently explained and discharged his burden we are of the opinion that at this stage debarring a person from accessing the securities market is not justified in the facts of the case,” said SAT while quashing Sebi’s confirmatory order. “In the absence of any direct or indirect evidence coming forth at this stage and the fact that the investigation is still continuing, which may take time for issuance of a show cause notice, we are of the opinion that the continuation of the interim order against the appellant is unjustified especially when the appellant has not traded in the scrip nor is there any finding that he is a party to unlawful gain,” the tribunal said.

The case pertains to entities and individuals including Pranshu Bhutra, Amit Bhutra, Bharath C. Jain, Capital One Partners, Tesora Capital, Venkata Subramaniam VV Pranshu Bhutra sr corporate counsel of Infosys and Venkata Subramaniam VV senior principal, corporate accounting group, Infosys.