Infosys initiates internal investigation against staff named in insider trading case, says action will be taken

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26 Aug, 2025 12:21

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Software major Infosys said it has ordered an internal investigation on two  of its employees named in an insider trading case. It said that appropriate action will be taken once it completes the probe.

Infosys statement came hours after an order by market regulator Securities and Exchanges Board of India (SEBI) where it named Pranshu Bhutra, Senior Corporate Counsel, and Venkata Subramaniam VV, Senior Principal, Corporate Accounting Group, in an insider trading case dating back to June 2020.

“On June 1, Infosys was informed of an interim ex-parte SEBI Order where two of its employees, amongst other third parties have been named, in an ongoing insider trading investigation. The company will extend full cooperation as required to SEBI on the matter. Additionally, as a result of the Order, an internal investigation is being initiated and appropriate action will be taken on conclusion of such investigation,” the company said in a statement.

It further said that the company has a well-defined Code of Conduct covering all its employees and an Insider Trading Policy that governs dealing with unpublished price sensitive information.

SEBI order

In an order dated May 31, SEBI banned eight entities and individuals selling and buying securities directly or indirectly until further notice. They were also fined Rs 3.06 crore.

These include two Infosys employees – Pranshu Bhutra, Senior Corporate Counsel, and Venkata Subramaniam VV, Senior Principal, Corporate Accounting Group. The other parties in the case are Amit Bhutra and Bharath C Jain from Capital One Partners and Ankush Bhutra, Amit Bhutra, and Manish Champalal Jain from Tesora.

Analysts and governance experts Moneycontrol spoke to, said that while this in an individual failure and that the company’s governance systems continue to be robust, Infosys needs to emphasise and amplify its values to prevent such slippages in future.

Shriram Subramanian, founder, InGovern Research Services, a proxy advisory firm, said, “This looks like transgression of two senior employees.”

“The company will have to strengthen its way of who has access to unpublished price sensitive information (UPSI) and sensitise people to the seriousness of it. They should also sensitise (employees) on violation of Prohibition of Insider Training (PIT) guidelines,” Subramanian said.

As per SEBI guidelines, Unpublished Price sensitive Information (UPSI) refers to any information that concerns the company directly or indirectly, but is not meant for the disclosure to the larger public. The information is sensitive and can impact the stock market prices.

In this case, the two employees were able to access the UPSI and had shared the information with Capital One and Tesora partners, who had generated illegal gains of Rs 3.06 crore, which has been levied as fine by the SEBI, the order read.