New Delhi: Salil Parekh, the CEO of Infosys, has agreed to pay Rs 25 lakh to resolve charges of violating insider trading laws, the Securities and Exchange Board of India (Sebi) announced on Thursday.
On May 21, Sebi's panel of whole time members approved the settlement as suggested by the High Powered Advisory Committee (HPAC). On June 7, the payment was made, and Sebi attested to receiving the sum.
The case is the result of an inquiry conducted by Sebi, which discovered that Infosys had broken the PIT Regulations, 2015, and the Sebi Act between June 29, 2020, and September 27, 2021. Infosys has improperly classified some information as Unpublished Price Sensitive Information (UPSI), as Sebi found out.
Salil Parekh suggested reaching a settlement without making any admissions or refutations. According to Sebi, the processes have been concluded in accordance with the prearranged terms, and the settlement money has been paid.
The Infosys-Vanguard alliance in 2020 is connected to the insider trading case. According to Sebi's examination, Infosys understood the strategic value of this collaboration for growing its revenue and expanding its business. The PIT Regulations, 2015 classified the partnership's information as UPSI.
With a turnover of Rs 10.73 crore, Infosys' shares were trading 0.30 percent higher at Rs 1,545.95, giving it a market capitalization of Rs 6,41,862.25 crore.
The CEO and MD are in charge of keeping an efficient internal control system in place to stop insider trading in accordance with legislation. Parekh chose to settle after sending Infosys a show-cause notice.
The Sebi order made clear that Infosys' strategic alliance with Vanguard, which was considered a crucial step toward expansion, was subject to UPSI and required adherence to insider trading regulations.
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