BENGALURU: Infosys CEO Salil Parekh Agrees to Settle Insider Trading Charges

Infosys CEO Salil Parekh has agreed to pay Rs 25 lakh as settlement charges for failing to implement adequate internal controls to comply with Sebi’s rules on insider trading.

Parekh entered into a settlement agreement with Sebi following an investigation that found two entities in violation of Sebi Act and PIT Regulations, 2015.

Infosys stated that the settlement order has no impact on its financial, operational, or other activities.

Background on the Case

The case revolves around Infosys’s deal with Vanguard in 2020. The partnership involved Infosys taking over day-to-day operations supporting Vanguard’s DC record-keeping business, including software platforms, administration, and associated processes. Approximately 1,300 roles from Vanguard were transitioned to Infosys. Vanguard, being a major player in the defined contribution space, looked to Infosys for a cloud-based record-keeping platform.

Conclusion of the Investigation

The investigation determined that the information regarding the strategic partnership fell within the definition of unpublished price-sensitive information (UPSI) under the PIT Regulations, 2015.