Rajat Gupta resigns from ISB board

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Abu Sheikh

21 March, 2011

Indian American business leader Rajat Gupta has resigned as the chairman of the executive board of the Indian School of Hyderabad. Gupta's exit comes in the aftermath of allegations that he was involved in leaking confidential business information.

HYDERABAD-BASED Indian School of Business on Monday said that Rajat Gupta, who has been accused of leaking confidential information to a hedge fund manager by Securities and Exchange Commission (SEC) has resigned as chairman of the school's executive Board.

Gupta, who is know as a business leader across the world, is facing charges of tipping hedge fund owner Raj Rajaratnam, who is at the centre of a multi-million dollar inside trading case. Gupta is alleged to have given information to Rajaratnam about a possible plan by billionaire Warren Buffet to invest in Goldman Sachs.

“Rajat Gupta has requested the ISB executive board to relieve him of his board responsibilities till his pending matter with the U.S. SEC is resolved," the Hyderabad-based Indian School of Business (ISB) said in a statement.

SEC has accused Gupta and Anil Kumar, a co-accused to have passed on confidential information on Goldman Sachs as well as Procter and Gamble Co to the hedge fund owner Rajaratnam. SEC has alleged that these tip-offs lead to profits of 18 million dollars and in addition saved losses to the hedge fund.

Even as efforts are being made to prosecute him, Rajat Gupta has counter sued the SEC, denying all charges.