Kiran Mazumdar-Shaw Sold 1,600 Shares Without Pre-Clearance, Says Infosys
Infosys Ltd. said that 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 for the trade.
Following a review by the audit committee of the company’s board that determined that there was a violation of the Infosys Insider Trading Policy and SEBI’s (Prohibition of Insider Trading) Regulations, 2015, a penalty of Rs 9.5 lakh has been imposed on Mazumdar-Shaw, according to the Bengaluru-based company's exchange filing.
Infosys added that the transaction occurred when the trading window was open.
The trade was carried out by the portfolio manager without the knowledge of Ms Mazumdar-Shaw.Infosys’ Exchange Filing
The filing explained that in portfolio management services, the investor does not generally monitor the day-to-day investment decisions and in this case too, Mazumdar-Shaw had given no instruction to conduct the trade.
"... she also had no knowledge of the trade having occurred. The portfolio manager unilaterally took the decision to conduct the trade," it added.
The penalty amount of Rs 9.5 lakh will be payable to a charitable organisation of her choice, the filing noted.