Bengaluru: Digital technology major Infosys has fined its lead independent director Kiran Mazumdar-Shaw for “inadvertently” selling 1,600 shares of the company during the open trading window.
The shares were sold by her portfolio management services without obtaining her clearance, said Infosys in a filing to the stock exchanges on Thursday.
Shaw was not aware of the transaction. Following the development, she was fined Rs 9.5 lakh that she needs to pay to a charity organisation.
As per Infosys filings, the development was brought to the attention of the Compliance Officer of Infosys on February 13.
In a stock exchange filing, Infosys said: “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. 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. The portfolio manager unilaterally took the decision to conduct the trade.’’
It further said, the company’s Audit Committee found out there was a violation of insider trading policy and therefore levied a penalty of Rs 9.5 lakh on Shaw that she has to pay to a charitable organisation of her choice. However, it also clarified that it was done inadvertently, without any intention of violating trading rules set by market regulator, Sebi as well as Infosys.
A similar case was reported a few years ago involving former board member of Infosys Ravi Ventatesan, who bought 50 shares of the company during the trade closure window violating trading restrictions.
