SEBI has banned trading on the stock exchange of one employee each of IT sector giants Infosys and Wipro.
New Delhi. The country’s market regulator Securities and Exchange Board of India (SEBI) has banned trading on the stock exchange of one employee each of IT sector giants Infosys and Wipro. This case is related to Insider Trading in Infosys.
The two people who have been banned by SEBI are Ramit Choudhary and Keyur Maniar, in its order issued on September 27, SEBI has said that both these employees had done insider trading during the Vanguard deal of Infosys in July 2020.
What is Vanguard deal insider trading?
Ramit Choudhary of Infosys was the company’s solutions design head and had direct knowledge of the Vanguard deal. Chaudhary had some such information which was not public. On the basis of which Ramit Chaudhary had traded in the shares of Infosys. According to Chaudhary’s LinkedIn profile, he joined Infosys in April 2021.
According to the SEBI order, Choudhary was in touch with Maniyar, an employee of Wipro. Chaudhary had shared secret information of Infosys to him over the phone. On 14 July 2020, before the announcement of the deal, Maniyar had bought the shares and made a profit by selling it as soon as the deal was announced. He had raised Rs 2.6 crore in this trading.
Earlier on June 1, 2021, SEBI had banned two Infosys employees and 6 companies and individuals from trading in the stock market. They were accused of trading in the shares of the company before the June 2020 quarter results. Infosys started the investigation after receiving a complaint about insider trading.
