NEW YORK — A former Goldman Sachs and Procter & Gamble board member convicted of insider trading charges can remain free on bail pending the appeal of his insider trading conviction, a federal appellate panel said Tuesday.

Rajat Gupta, surrounded by family members including his four daughters, watched the arguments before leaving the Manhattan courthouse visibly pleased, breaking into a smile as a cameraman positioned himself before him. He was sentenced to two years in prison and fined $5 million in October.