Sebi prohibits two individuals in Infosys insider trading case, seizes Rs 2.6 crore.
The Securities and Exchange Board of India (Sebi) has taken action against two individuals involved in insider trading activities related to Infosys stocks. Keyur Maniar, identified as the alleged insider trader, and Ramit Chaudhri, a former Infosys employee, have been prohibited from the securities market for one year by Sebi. Additionally, the regulator has confiscated illegal gains amounting to over Rs 2.60 crore made by the two individuals.
In its order, Sebi imposed a Rs 30 lakh fine on both Keyur Maniar and Ramit Chaudhri and mandated them to pay the penalty within 45 days. Furthermore, Sebi directed Keyur Maniar to disgorge the illegal gains of Rs 2.60 crore, along with 12 per cent annual interest from July 17, 2020, within 45 days of the order being issued.
The evidence presented indicated that Ramit Chaudhri had insider access to Unpublished Price Sensitive Information (UPSI) regarding the Vanguard deal, while Keyur Maniar, with whom Chaudhri had a close personal and professional relationship, was aware of this information as well.
According to Sebi’s findings, Keyur Maniar was considered a connected person under the Prohibition of Insider Trading (PIT) regulations and was engaged in insider trading activities while in possession of UPSI communicated by Chaudhri.
Both individuals were found to have violated the PIT rules by engaging in insider trading activities related to Infosys stocks. Sebi’s whole-time member, Ananth Narayan G, noted these violations in a detailed 93-page final order.
Sebi initiated the investigation into this matter after detecting suspicious trades by Keyur Maniar and Ramit Chaudhri through its surveillance system. An interim order was issued against them in September 2021, followed by a confirmatory order in December 2021.
Despite the entities challenging both rulings before the Securities Appellate Tribunal (SAT), Sebi re-examined the case and issued the final order on Friday, upholding the penalties imposed on Keyur Maniar and Ramit Chaudhri.