Good news for all those upset about Rajat Gupta's impending incarceration. The India-born former Goldman Sachs director has won a major reprieve after an appeals court granted his request to stay out of prison on a USD 10 million-bond while he fights his conviction on insider trading charges.

Gupta (64), who was to begin his two-year prison term on January 8, had filed an appeal in the US Second Circuit Court of Appeals seeking stay of his surrender to prison and to remain free on a 10-million-dollar bond while he challenges his conviction.

A two-judge panel ruled in Gupta's favour at a hearing yesterday, saying "it is hereby ordered that the conditions of release imposed by the district court will be continued.

"Motion is granted," US Circuit Judge Jose Cabranes said in the ruling, allowing Gupta's motion to stay his surrender date and remain free on bond.

The court is expected to hear Gupta's appeal around April next year and it could be a year before his request to overturn his conviction is ruled upon. The bail conditions imposed by the district court since Gupta's arrest in October last year include the 10 million dollar-bond, surrender of his passports and travel restrictions.