Securities and Exchange Board of India (Sebi) has banned eight entities and individuals from trading in the stock market and fined them Rs 3.06 crore after they were held guilty on insider trades on Infosys stock.
These eight entities and individuals are: Pranshu Bhutra, Amit Bhutra, Bharat C Jain, Manish Champalal, Ankush Bhutra, Amit Bhutra, Capital One and Tesora.
Amit and Bharath are working partners of Capital One.
Amit, Ankush Bhutra and Manish Champalal Jain are working partners of Tesora.
Capital One Partners and Tesora Capital had made illegal gains of Rs 2.795 crore and Rs 26.82 lakhs respectively by indulging in insider trading while in possession of the UPSI pertaining to the corporate announcement of audited financial results for the quarter ended June 30, 2020 made by Infosys, Sebi said.
Sebi further said, “Capital One and Tesora had traded in the scrip of Infosys in the F&O segment just prior to 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 F&O segment while in possession of UPSI.”
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.
The trading concentration of Capital One and Tesora in the scrip of Infosys had increased drastically during the said weeks. Thus, Capital One and Tesora have the same repetitive pattern of trading in the scrip of Infosys during periods close to the announcement of financial results.
Sebi further said, Venkata Subramaniam V. V, senior principal, Corporate Accounting Group, Infosys is deemed an insider who had frequent communications with with Pranshu. Thus, Pranshu is also reasonably an insider.
“Venkata and Pranshu had prime facie violated the provision of SEBI Act and PIT Regulations, for communication and procurement of the UPSI,” Sebi said.