INSUBCONTINENT EXCLUSIVE:
New Delhi: IT major Infosys has settled with Sebi a case of alleged disclosure lapses regarding severance payment made to its former chief
financial officer Rajiv Bansal.
The company paid Rs 34.35 lakh to settle the case with the markets regulator, according to an order.
The
watchdog had issued a notice seeking to initiate adjudication proceedings against the company in November 2017.
The notice related to Sebi
examining the scrip of Infosys during which the issues pertaining to severance payment to Bansal was also looked into
Bansal resigned from the company on October 11, 2015, according to the order.
During the examination, prima facie, it was found that the
severance payment was made without prior approval of audit committee as well as nomination and remuneration committee
These were violations of various listing norms.
In December 2017, Infosys filed an application under the settlement mechanism.
The company
in its meeting with the regulator's internal committee in February 2018 proposed to pay Rs 34.35 lakh towards settlement charges.
The
amount was approved by the panel of whole-time members of Sebi, the regulator said in an order dated February 15.
Infosys paid Rs 34.35 lakh
towards settlement charges on February 4, following which the regulator has disposed of the "proposed adjudication proceedings in respect of
the applicant for the defaults".
Enforcement actions, including restoring or initiating the proceedings, could be initiated if any
representation made by them is found to be untrue, the Sebi order said.
