Infosys CEO settles insider trading charges
Infosys CEO Salil Parekh agreed to pay 2.5 million rupees (around $30,000) to settle the charges.
According to India‘s markets regulator, Infosys CEO Salil Parekh has settled charges related to insufficient internal controls to prevent insider trading during a 2020 contract. Parekh agreed to pay approximately $30,000 to settle the charge, which stemmed from a contract where Infosys provided a cloud-based record-keeping platform to US financial firm Vanguard.
The Securities and Exchange Board of India (SEBI) stated that Infosys failed to recognise certain unpublished price-sensitive information (UPSI) as such. Though SEBI did not specify the information, it held Parekh accountable for the lapse. In response, Infosys has implemented an internal policy to identify UPSI and now seeks approval from the board and audit committee for such information.
Additionally, Infosys has started breaking down the total contract value of deals into average revenue per annum for comparison with its annual revenue. The initiative aims to enhance transparency and prevent future lapses in internal controls.
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