Sebi has warned Infosys for delayed updation of information in the structured digital database (SDD) system, a mandatory monitoring system to track unpublished price-sensitive information. Sebi also rejected the response of Infosys that the delay was due to the pandemic.
In its letter to Infosys, Sebi said after examination of the SDD maintained by Infosys under Sebi (Prohibition of Insider Trading) Regulations, 2015, it found that there were certain entries which were logged with a delay. “It was submitted by INFY that during FY2020-21 due to the ongoing Covid-19 pandemic, most of the workforce was working from their respective homes and not from the office premises. Therefore, it was logistically difficult to coordinate and maintain these records. While the information pertaining to unpublished price sensitive information (UPSI) during such period was available within INFY, it seems that updating of such information in the SDD system was delayed.”
UPSI is information related to a company or its securities that is normally not available to general public. But if becomes available, such information will likely to materially affect the price of securities.
Ravi Prakash, associate partner, Corporate Professionals, said: “The SDD is a mandatory monitoring system for listed companies to track unpublished price-sensitive information (UPSI) movement within and outside their organization… Infosys received a warning from Sebi for not updating it on time, highlighting the need to improve internal controls. This situation serves as a reminder of the importance of handling the SDD diligently.”