Kiran Mazumdar-Shaw, the Lead Independent Director of Infosys Limited has inadvertently sold  1,600 shares of the company through her portfolio management services without obtaining pre-clearance for the trade, according to the IT giant. Infosys in a statement released said, “the trade was carried out by the portfolio manager without the knowledge of Ms Mazumdar-Shaw.”
Following the event, the audit committee of the company’s Board of Directors concluded that the trade was made without intent to violate the Infosys Insider Trading Policy or the SEBI (Prohibition of Insider Trading) Regulations, 2015. However, the audit committee decided to impose an Rs. 9.5 lakh fine on Mazumdar-Shaw.
According to the company’s exchange filing, the fine of Rs. 9.5 lakhs will be paid to a charitable organization of Mazumdar-Shaw choice. Infosys in its statement also informed that the occurred when the trading window was open.
While explaining the entire scenario, Infosys Limited stated, “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.”
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