Infosys director Bobby Parikh penalized for stock market trade
Infosys is among the big hitter of the corporate world, and any news related to the company receives great attention. The recent news about Bobby Parikh, who was appointed as an Independent Director of Infosys effective on July 15, 2020, has been under the allegation for stock market inadvertent trading. Parikh has served as a former Chief Executive Officer of Ernst and Young in India until December 2003.
Infosys intimated the stock exchanges about this unintended trading by a delegated person. The company gave the statement that the portfolio management services of Bela Parikh, Bobby Parikh’s wife, had bought 2,754 shares during the open trading window period without the knowledge of Bobby Parikh and without obtaining pre-clearance of trade.
The Audit Committee of Infosys has concluded that it was an inadvertent trade made without the intention to violate the Company's insider trading Policy or the SEBI Regulations, 2015. However, the Committee has determined a violation of the company's policy and PIT Regulations and has therefore imposed a fine of Rs 200,000 on Mr. Parikh, which will be handed over to IPEF in accordance with the PIT Regulations.