Infosys CEO Salil Parekh has reached a settlement with market regulator Securities and Exchange Board of India (SEBI) over an insider trading case. Parekh has agreed to pay a sum of ₹25 lakh to settle the matter.
What Happened: As per the SEBI order issued on Thursday, two entities were previously implicated in an interim ex parte order for alleged insider trading in Infosys’s scrip. This order was confirmed on December 13, 2021.
In July 2020, Infosys had inked a strategic partnership with Vanguard. SEBI had fined two Infosys employees in 2021 for insider trading before the company’s financial results were announcement for the quarter ended June 2020.
SEBI’s investigation into the alleged violations found that certain unpublished price sensitive information (UPSI) was not treated appropriately by Infosys.
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The investigation concluded that Parekh, who was Infosys’ CEO and managing director at the time, violated two provisions of Prohibition of Insider Trading Regulations 2015. A show cause notice was subsequently issued to Parekh on August 03, 2023.
Parekh submitted a Settlement Application on October 03, 2023, proposing to settle the proceedings without admitting or denying the findings of fact and conclusions of law. The application was reviewed by the high-powered advisory committee (HPAC) in a meeting held on March 04.
The HPAC recommended settling the case upon payment of ₹25 lakh. The panel of whole time members of SEBI accepted this recommendation on May 21. The settlement amount was paid on June 07, and SEBI confirmed its receipt.
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