Infosys CEO Parekh settles insider trading case with SEBI

New Delhi. Salil Parekh, Managing Director and Chief Executive Officer (CEO) of the giant information technology (IT) company Infosys, has settled the case of alleged violation of insider trading rules by paying Rs 25 lakh to market regulator SEBI. According to the order passed by the Securities and Exchange Board of India (SEBI), he (Parekh) allegedly failed to establish ‘adequate and effective system’ of internal control to ensure compliance to prevent insider trading.

The case arose from a Sebi investigation into alleged insider trading in Infosys shares between June 29, 2020 and September 27, 2021. The investigation found that certain ‘unpublished price sensitive information’ (UPSI) information was not treated as such by Infosys. The latest decision came after Parekh proposed to settle the alleged violations through a settlement order to Sebi ‘without admitting or denying the findings of fact’.

In an order issued on Wednesday, SEBI said, “In view of the acceptance of the settlement terms by SEBI and receipt of the settlement amount, the specified proceedings initiated against the applicant (Parekh) under the show cause notice dated August 3, 2023 are disposed of.” The case relates to the partnership announced between Infosys and US-based asset management company Vanguard in July 2020.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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