Infosys' Salil Parekh Settles SEBI Insider Trading Case

Infosys MD and CEO Salil Parekh has paid Rs 25 lakh to settle a case with SEBI regarding alleged insider trading violations. SEBI's investigation found deficiencies in Infosys' handling of Unpublished Price Sensitive Information during a partnership with Vanguard. The case has now been settled without an admission of guilt.

New Delhi, Jun 27 (PTI) - Infosys' Managing Director and CEO, Salil Parekh, has resolved an insider trading case with the Securities and Exchange Board of India (SEBI) by paying a settlement fee of Rs 25 lakh.

The regulatory body had alleged that Parekh failed to implement adequate internal controls to prevent insider trading, according to an order issued by SEBI. The issues arose from SEBI's investigation into potential insider trading related to Infosys' partnership deal with US asset manager Vanguard, spanning from June 29, 2020, to September 27, 2021.

Parekh proposed a settlement to SEBI, agreeing to terms without admitting or denying the findings. SEBI accepted the settlement on the specified terms, thereby concluding the proceedings initially brought against Parekh in a show-cause notice dated August 3, 2023. The strategic partnership with Vanguard, intended as a significant expansion for Infosys, involved the provision of a cloud-based record-keeping platform and fell under Unpublished Price Sensitive Information (UPSI) regulations that mandate stringent compliance measures. SEBI's probe highlighted a lapse in this compliance. The case is now officially closed following the settlement.

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