Infosys receives an administrative warning from SEBI for submitting SDD entries slowly

10 Aug 2023 , 11:52 AM

The Structured Digital Database (SDD) of Infosys, the database of unpublished price sensitive information (UPSI), has experienced some entry delays, prompting the Securities and Exchange Board of India (SEBI) to issue a ‘administrative warning’ to the company.

There were several entries that the SDD logged with a delay. According to information provided by INFY, the majority of the staff did not work from the office during FY2020–21 because to the ongoing COVID–19 pandemic.

Therefore, organizing and maintaining these documents was logistically challenging. The IT major stated in a regulatory filing on August 9 that although the information relevant to UPSI during such a period was available within INFY, it appears that updating of such information in the SDD system was delayed.

The company’s explanation that the pandemic was to blame for the delay in updating the SDD was rejected, it was said. It should have been standard practice to verify the SDD on a regular basis to make sure that such data was correctly logged.

‘SEBI has taken the aforementioned infractions very seriously. As a result, the Company Secretary was forewarned and moving forward was counselled to exercise caution when it came to the maintenance of SDD, according to the petition.

Infosys is currently performing internal due diligence in determining the accuracy of SDD records as part of corporate governance practices, it was said.

The corporation stated that the administrative warning letter indicated above had no effect on the listed entity’s finances, operations, or other activities.

On the BSE, Infosys shares closed marginally higher at Rs. 1,392.45 a share.

Unpublished price-sensitive information (UPSI) provided internally or externally in a structured digital database is used to keep track of who was aware of a UPSI before it was made public.

The SEBI (Prohibition of Insider Trading) Regulations, 2015 are the source of the idea. It became operative on April 1, 2019.

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