Biz Updates: SEBI sanctions lifted in Infosys-related business case; SAT reaches FPI included in Hindenburg list

New Delhi| The Securities and Exchange Board of India (SEBI) on Monday lifted restrictions imposed on 16 units and individuals, including some former employees of the information technology (IT) company, in a case related to alleged insider trading activities in Infosys shares. It also directed that through the interim order, the ban imposed on six entities and individuals – Amit Bhootra, Bharat C Jain, Capital One Partners, Tesora Capital, Manish C Jain and Ankush Bhootra will be lifted with immediate effect.

Ashwini Bhatia, a full-time member of SEBI, said in the 57-page final order, ‘I consider it appropriate to cancel the instructions issued through interim order along with confirmation order against notices 2-7 and dispose of immediate action against all notices’

Two Mauritius-based foreign portfolio investors (FPIs) have approached the Securities Appellate Tribunal (SAT) to seek relief from SEBI’s new rules for foreign investors. The names of LTS Investment Funds and Lotus Global Investment came in Hindenburg’s report released in January 2023. Both the FPIs had filed a case on August 19 and deposited the necessary fees and have sought immediate hearing and relief in this matter.

Both the funds allege that they are being asked to fulfill specific conditions which are not applicable to other FPIs, which is having a negative impact on their investors. The hearing on this matter is next week. These two FPIs have appealed to SAT to swiftly decide on their applications for relief as well as protection from SEBI’s order, which gave a deadline of September 9 for compliance with the rules. He has asked the tribunal to give him a deadline of March 2025 to fulfill these rules from SEBI.

The Securities and Exchange Board of India (SEBI) has banned Secure Credentials and its Managing Director (MD) Rahul Belwalkar from the securities markets in a case related to alleged fund diversion. SEBI confirmed this on Monday. SEBI had passed an interim order in June this year regarding banning of Secure (SecUR) credentials and MDs and also barred MD Belwalkar from acting as a director of any listed company or SEBI registered intermediary. After passing the interim order, SEBI said that in compliance with the principles of natural justice, Secure Credentials and Belwalkar have been provided adequate opportunities to present their case, however, they have failed to avail the same. Secure Credentials is a Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) listed entity. It had moved from the SME platform to the mainboard in October 2022.

Around 900 workers at Samsung’s Chennai plant went on strike on Monday demanding wage increases and improvements in working conditions, affecting the production of consumer products at the plant. When contacted, a Samsung India spokesperson said, ‘At Samsung India, the welfare of our employees is our top priority. We remain actively engaged with our employees to address any complaints they may have and comply with all laws and regulations. We will also ensure that there is no disruption for our consumers there. It is estimated that the factory has 1800 employees producing consumer products such as televisions, refrigerators, washing machines, etc.