In a 57-page order, the market regulator vacated interim and confirmatory orders against four individuals and two entities which had barred them from accessing the securities market. The orders were issued in 2021.
The regulator in its order also said that proceedings against all 16 noticees are disposed of without any direction.
Sebi also released the amount (if any) impounded from them that has been deposited in escrow accounts.
The case was related to alleged insider trading in the scrip of Infosys for the period around July 15, 2020 which was close to the announcement of audited financial results of the company for the quarter ended June 30, 2020. A detailed investigation was undertaken to ascertain whether there was any insider trading during the period from December 1, 2019 to November 30, 2020.
Sebi conducted a preliminary examination in the scrip of Infosys to ascertain whether certain persons and entities traded in the stock while they were in possession of unpublished price sensitive information, in contravention of the provisions of the SEBI Act, 1992.The regulator had investigated allegations of insider trading during the period from December 1, 2019, to November 30, 2020 covering financial results for four quarters. The regulator also looked into periods outside of this whenever necessary.Based on its preliminary examination, Sebi prima facie found that Infosys employees and certain entities had violated the provisions of insider trading regulations and subsequently barred them from accessing the securities market via an interim order of May 31, 2021 which was later confirmed via an order of September 15, 2021.
While the investigation was on, two accused filed appeals against the orders before the Securities Appellate Tribunal (SAT) which quashed both the orders in respect to these appellants via order dated April 25, 2022.
Sebi later on December 2, 2022 issued show cause notice to 16 noticees.
In the September 9, 2024 order Sebi ruled that the material available on record was not sufficient for sustaining the allegation against the accused.
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