A former research analyst charged with providing insider information about Microsoft Corp. and Yahoo Inc. to SAC Capital Advisors was freed on bail Friday following his first New York court appearance.

U.S. Magistrate Judge Frank Maas granted bail for Sandeep Aggarwal, a 40-year-old Gurgon, India, resident, under the condition that he provide a $500,000 bond secured by $50,000 in cash.

Aggarwal, who was arrested July 29 in California, appeared in court in a gray suit and white shirt, backed by his wife, who has agreed to co-sign his bond. Judge Maas said Aggarwal must secure another co-signer and restrict his travel to the Southern and Eastern Districts of New York, New Jersey and the Northern District of California.

Prosecutors charged Aggarwal with two counts of conspiracy for allegedly providing at least two hedge funds with information he learned from a friend at Microsoft about the tech company's then-coming Web search partnership with Yahoo. Prosecutors claim that former SAC portfolio Richard Lee, who has pled guilty and is cooperating with the government, was a recipient of Aggarwal's tips.

"We're continuing to review the allegations," Aggarwal's lawyer Sam Braverman said outside the courtroom Friday. "We're interested in reviewing the discovery. The defendant, as promised,came to New York to address the charges directly."

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