Infosys lead director sells 1,600 shares without nod, fined Rs 9.5 lakhhttps://indianexpress.com/article/business/companies/infosys-lead-director-sells-1600-shares-without-nod-fined-rs-9-5-lakh-5605872/

Infosys lead director sells 1,600 shares without nod, fined Rs 9.5 lakh

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According to Infosys, the trade occurred when the trading window was open.

Infosys on Thursday said its Lead Independent Director Kiran Mazumdar-Shaw had inadvertently through her portfolio management services sold 1,600 shares of the company without obtaining pre-clearance of trade.

The Audit Committee of the company’s board has determined that there was a violation of the Infosys Insider Trading Policy, and the PIT Regulations and imposed on Mazumdar-Shaw a penalty of Rs 9.50 lakh which will be payable to a charitable organisation of her choice, the company said in a stock exchange filing.

“On February 13, 2019, it was brought to the attention of the Compliance Officer of Infosys 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,” it said. Mazumdar-Shaw is the chairperson and managing director of Biocon Ltd.

According to Infosys, the trade occurred when the trading window was open.

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“The trade was carried out by the portfolio manager without the knowledge of Mazumdar-Shaw. In portfolio management services, the investor does not generally monitor the day-to-day investment decisions,” it said.

“In this case as well, Mazumdar-Shaw had given no instruction to conduct the trade and she also had no knowledge of the trade having occurred,” it said.

Infosys said the portfolio manager unilaterally took the decision to conduct the trade. The Audit Committee of the company’s board of directors, which is responsible for review of compliance with the insider trading policy of the company was notified of this matter.

“Based on Mazumdar-Shaw’s submission, the Audit Committee believes, that this was an inadvertent trade made without intent to violate the Infosys Insider Trading Policy or the SEBI (Prohibition of Insider Trading) Regulations, 2015,” it said.

In accordance with the PIT Regulations and the Infosys Insider Trading Policy, Infosys will also be notifying the SEBI of this event, the company said.