With American authorities formally charging the former McKinsey managing director, Rajat Gupta, with insider trading, questions are being raised about his future on the boards of several Indian institutions.
On March 1, the U.S. Securities and Exchange Commission (SEC) announced insider trading charges against Mr. Gupta, formerly on the boards of both Goldman Sachs and Procter and Gamble, for illegally tipping off a hedge fund manager with confidential information about quarterly earnings at both firms and an impending $5 billion investment in Goldman.
The tips allegedly earned more than $18 million for the Galleon Group, whose founder Raj Rajaratnam will face insider trading charges in court later this week. Mr. Gupta was a direct or indirect investor in some of Galleon's funds at the time, according to the SEC.
On March 1, the U.S. Securities and Exchange Commission (SEC) announced insider trading charges against Mr. Gupta, formerly on the boards of both Goldman Sachs and Procter and Gamble, for illegally tipping off a hedge fund manager with confidential information about quarterly earnings at both firms and an impending $5 billion investment in Goldman.
The tips allegedly earned more than $18 million for the Galleon Group, whose founder Raj Rajaratnam will face insider trading charges in court later this week. Mr. Gupta was a direct or indirect investor in some of Galleon's funds at the time, according to the SEC.
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