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In an interim order, the Securities and Exchange Board of India (SEBI) has banned eight entities and individuals from trading in the stock market and imposed a collective penalty of Rs 3.06 crore after they were held guilty on insider trades on Infosys stock.
The eight entities and individuals are: Pranshu Bhutra, Amit Bhutra, Bharat C Jain, Manish Champalal, Ankush Bhutra, Amit Bhutra, Capital One and Tesora. Amit Bhutra and Bharath C Jain are working partners of Capital One. Amit Bhutra, Ankush Bhutra and Manish Champalal Jain are working partners of Tesora.
According to SEBI, Capital One Partners and Tesora Capital had made illegal gains of Rs 27.95 crore and Rs 26.82 lakhs respectively by indulging in insider trading while in possession of the unpublished price sensitive information (UPSI) pertaining to the corporate announcement of audited financial results for the quarter ended 30 June 2020 made by Infosys.
Sebi has barred eight entities from the securities market for indulging in insider trading activities in the shares of Infosys. While imposing the ban till further orders on the eight entities, the watchdog also directed impounding illegal gains worth Rs 3.06 crore from two of them Capital One Partners and Tesora Capital. The entities have traded in the scrip of Infosys while in possession of Unpublished Price Sensitive Information (UPSI) pertaining to Infosys financial results for the quarter ended June 30, 2020, Sebi said in an interim order passed on Monday. Capital One and its working partners Amit Bhutra and Bharath C Jain as well as Tesora Capital and its working partners Amit Bhutra, Ankush Bhutra and Manish Champalal Jain have been barred from the securities market. Besides, Pranshu Bhutra, Senior Corporate Counsel of Infosys and Venkata Subramaniam V V, Senior Principal, Corporate Accounting Group of the company, have been barred, as per the order.
By indulging in such trades, Capital One Partners and Tesora Capital had made illegal gains to the tune of Rs 2.79 crore and Rs 26.82 lakh, respectively, according to Sebi.
Senior principal of corporate account group at Infosys
Designated person for the price sensitive information at Infosys. Alleged to have leaked the insider information to Pranshu.Source: SEBI, = unpublished price sensitive information (UPSI)
Phone calls, emails and the ‘fatherly’ connection
SEBI has gathered a plethora of evidence to support its allegations using email exchanges, telephonic records and banking transactions. And, it all starts with Pranshu Bhutra.
Amit Bhutra is listed as a director on the board of a company called Mahrishi Alloy Private limited, which claims to make steel products. And, so is Pranshu Bhutra’s father, Ram Bilas Bhutra. That’s where the trail begins.
SEBI bars 8 entities in Infosys insider trading case, impounds accounts
By IANS |
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Exchanges, clearing corps asked to begin asset liquidation of defaulters. Image Source: IANS News
Mumbai, June 1 : The Securities and Exchange Board of India (SEBI) has barred eight entities, including individuals and two financial companies, for being involved in insider trading in the scrip of Infosys.
The entities are Pranshu Bhutra, Amit Bhutra, Bharath C. Jain, Manish C. Jain, Ankush Bhutra, Venkata Subramaniam V.V., and firms Capital One Partners and Tesora Capital.
The investigation found that the total proceeds generated from insider trading was over Rs 3.06 crore.