Infosys board fines Kiran Mazumdar-Shaw for inadvertently trading shares without nod

Infosys has imposed a Rs 950,000 fine on Lead Independent Director Kiran Mazumdar-Shaw for inadvertently trading 1,600 shares of the company without getting a pre-clearance for trade, Infosys said in its BSE filing on February 28.

According to the statement, the trade was carried out by the portfolio manager of Mazumdar-Shaw without her knowledge during an open trading window period on February 13.

“In portfolio management services, the investor does not generally monitor the day-to-day investment decisions. In this case, as well, Ms Mazumdar-Shaw 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,” the statement said.

Though it was “an inadvertent Trade made without intent to violate the Infosys Insider Trading Policy or the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations")”, the audit committee of the company’s board of directors has imposed a fine of Rs 9.5 lakh. This amount is payable to the charitable organisation of Mazumdar-Shaw’s choice."