sebi:WTM/SM/ISD/ISD_ISD/13381/2021-22
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Facts / Headnote
Ex-parte ad-interim order dated May 31, 2021 confirmed with modifications: Entities no. 1, 2, 3, 4, 5 and 8 restrained from dealing in securities of Infosys until further orders, freeze on credit/debit in demat accounts relaxed, and impounded amounts to remain in interest-bearing escrow with lien in favour of SEBI pending investigation.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12A
Regulations
- Reg. 4(1)
- Reg. 2(1)(d)
- Reg. 2(1)(n)(i)
- Reg. 3(5)
- Reg. 3(1)
- Reg. 3(2)
Parties
- Mr. Pranshu Bhutra
- Mr. Amit Bhutra
- Mr. Bharath C. Jain
- Capital One Partners
- Tesora Capital
- Mr. Manish C Jain
- Mr. Ankush Bhutra
- Mr. Venkata Subramaniam V. V
Holding
The ex-parte interim directions were confirmed with modifications, continuing restraint on Entities no. 1, 2, 3, 4, 5 and 8 from buying, selling or dealing in securities of Infosys until further orders while allowing demat credits/debits and continuing escrow/impoundment with SEBI lien pending detailed investigation.
Full text
Confirmatory Order in the matter of Insider Trading in the scrip of Infosys Limited Page 1 of 36 WTM/SM/ISD/ISD_ISD/13381/2021-22 SECURITIES AND EXCHANGE BOARD OF INDIA CONFIRMATORY ORDER UNDER SECTION 11(1), 11(4) AND 11B(1) OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 In respect of: Sr. No. Name of the Entity PAN 1 Mr. Pranshu Bhutra AJGPB4087R 2 Mr. Amit Bhutra ADTPB1150A 3 Mr. Bharath C. Jain AFTPJ6299J 4 Capital One Partners AANFC3427C 5 Tesora Capital AAMFT3003A 6 Mr. Manish C Jain AGDPJ5605M 7 Mr. Ankush Bhutra ASIPB1460F 8 Mr. Venkata Subramaniam V. V AAKPV6612K IN THE MATTER OF INSIDER TRADING IN THE SCRIP OF INFOSYS LIMITED
Confirmatory Order in the matter of Insider Trading in the scrip of Infosys Limited Page 2 of 36 Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted an examination in respect of trading activities of two partnership firms namely Capital One Partners (hereinafter referred to as ‘Capital One’/‘Entity no. 4’) and Tesora Capital (hereinafter referred to as ‘Tesora’/‘Entity no. 5’) in the scrip of the Company for the period hovering around the corporate announcement of the aforementioned audited financial results of the Company. The said quarterly financial results were prima-facie satisfying the ingredients of Unpublished Price Sensitive Information (hereinafter referred to as ‘UPSI’)in terms of provisions of Regulation 2(1)(n)(i) of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as ‘PIT Regulations, 2015’). Based on the extracts of Structured Digital Database as provided by Infosys (hereinafter referred to as ‘SD Database’), it was prima-facie found that the UPSI pertaining the quarter ended June 30, 2020, came into existence on June 29, 2020 and it was finally disclosed to the exchanges on July 15, 2020 at 16.21 hours i.e. after market hours. Therefore, it was prima-facie held that the UPSI related to the quarterly financial results for quarter ended on June 30, 2020 was in existence from June 29, 2020 to July 15, 2020 (hereinafter referred to as ‘UPSI Period’).
Confirmatory Order in the matter of Insider Trading in the scrip of Infosys Limited Page 3 of 36 of Infosys and was identified as a ‘Designated Person’ by Infosys during the said UPSI period. By virtue of being a Designated Person, Venkata was reasonably expected to have an access to and be in possession of the UPSI. It was found during examination that Venkata, apart from being a colleague of Pranshu, was also in frequent communication with Pranshu through telephonic communication during the UPSI period, which give rise to a strong preponderance of probability that Pranshu was also prima-facie having reasonable access to the UPSI through Venkata, hence, was a connected person as well, as far as the UPSI is concerned.
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Source: SecMarx — sebi:WTM/SM/ISD/ISD_ISD/13381/2021-22. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.