BENGALURU: Infosys CEO Salil Parekh has agreed to pay Rs 25 lakh as settlement charges for failing to put in place adequate internal controls to comply with Sebi‘s rules to prevent insider trading.
Parekh entered into a settlement agreement with Sebi following an investigation that ascertained two entities were in violation of the provisions of the Sebi Act and PIT Regulations, 2015.The company, however, said there is no impact on its financial, operational, or other activities pursuant to the settlement order.
The case relates to Infosys’s deal with Vanguard that was signed in 2020. Through the partnership, Infosys said it will assume day-to-day operations supporting Vanguard’s DC (defined contribution) record-keeping business, including software platforms, administration, and associated processes. Around 1,300 Vanguard roles transitioned to Infosys. Vanguard was the largest asset manager in the defined contribution space, and Infosys would provide a cloud-based record-keeping platform to Vanguard, the order said.
The investigation concludes that the information related to the strategic partnership was covered under the definition of unpublished price-sensitive information (UPSI) under the PIT Regulations, 2015.