“Infosys CEO Salil Parekh Settles Insider Trading Charges with SEBI for ₹2.5 Million”
Infosys CEO Salil Parekh has agreed to pay 2.5 million rupees (approximately $30,000) to settle charges with the Securities and Exchange Board of India (SEBI) for failing to implement adequate internal controls to prevent insider trading. The charges pertain to a 2020 contract with U.S. financial firm Vanguard for a cloud-based record-keeping platform.
Infosys CEO Salil Parekh has agreed to pay 2.5 million rupees (approximately $30,000) to settle charges with the Securities and Exchange Board of India (SEBI) for failing to implement adequate internal controls to prevent insider trading. The charges pertain to a 2020 contract with U.S. financial firm Vanguard for a cloud-based record-keeping platform.
The SEBI announced on Thursday that Mr. Parekh was held accountable for a lapse in internal controls related to unpublished price-sensitive information (UPSI) about the deal. Although Infosys disclosed the deal publicly in 2020, SEBI found that certain information had not been considered UPSI by Infosys, which contributed to the charges.
Since the incident, Infosys has taken measures to enhance its internal policies. The company has drafted a new policy to identify UPSI and requires approval from its board and audit committee. Additionally, Infosys now provides a detailed breakdown of the total contract value of any deal in terms of average revenue per annum for comparison with its annual revenue.
This settlement underscores the importance of robust internal controls and compliance with regulatory requirements to prevent insider trading. Infosys, India’s second-largest IT services exporter, continues to focus on strengthening its governance and transparency practices to ensure adherence to market regulations.
Sources By Agencies
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