Infosys fines Kiran Mazumdar Shaw Rs9.5 lakh for insider trading

Infosys’ compliance officer had noticed that Kiran Mazumdar-Shaw, Lead Independent Director of the company, had inadvertently, through her portfolio management services, sold 1,600 shares of Infosys without obtaining pre-clearance of trade.

Mar 01, 2019 06:03 IST India Infoline News Service

Infosys Limited announced in a press release that an inadvertent trade had been carried out by a designated person of Infosys Limited during trading hours.

Infosys’ compliance officer had noticed that Kiran Mazumdar-Shaw, Lead Independent Director of the company, had inadvertently, through her portfolio management services, sold 1,600 shares of Infosys without obtaining pre-clearance of trade.

"The trade was carried out by Mrs Shaw’s portfolio manager without her knowledge. She had given no instruction to conduct the trade and she also had no knowledge of the trade having occurred. The portfolio manager unilaterally took the decision to conduct the trade," mentioned Infosys in the exchange filing.

The company's audit committee, which is responsible for compliance with the company’s insider trading policy, was notified of this matter. 

However, the audit committee has determined that there was a violation of the Infosys insider trading policy and the PIT Regulations, and therefore, imposed on Mrs. Mazumdar-Shaw, a penalty of Rs9.5 lakh, which shall be payable to a charitable organization of her choice.

Infosys Ltd is currently trading at Rs739 up by Rs5.05 or 0.69% from its previous closing of Rs733.95 on the BSE.

The scrip opened at Rs737.80 and has touched a high and low of Rs742 and Rs735.55 respectively. So far 17,31,310 (NSE+BSE) shares were traded on the counter.

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