Infosys CEO and Managing Director Salil Parekh. File
| Photo Credit: Reuters

Infosys CEO Salil Parekh settled charges for failing to place adequate internal controls to prevent insider trading at India’s No.2 IT services exporter during a 2020 contract, the country’s markets regulator said on Thursday.

Mr. Parekh agreed to pay 2.5 million rupees (around $30,000) to settle the markets regulator’s charge, which related to a contract for Infosys to provide U.S. financial firm Vanguard with a cloud-based record-keeping platform.

Infosys publicly disclosed the deal in 2020, but the Securities and Exchange Board of India (SEBI) said “certain information which was unpublished price sensitive information (UPSI) had not been considered as such by Infosys”.

The regulator did not elaborate on what this information was but held Mr. Parekh accountable for what it considered a lapse in internal controls to prevent insider trading on that deal.

Since then, Infosys has drafted an internal policy to identify unpublished price-sensitive information and seek approval from its board and audit committee.

It has also started to provide a break-up of the total contract value of any deal in terms of average revenue per annum for comparison with its annual revenue.

“SEBI is making an example of Infosys and holding its CEO accountable,” said Shriram Subramanian, founder of proxy advisory firm InGovern Research Services.

The order will put all companies on notice as to what they consider and label as UPSI in their internal compliance systems, he said.

Bengaluru-based Infosys’ shares closed about 2% higher on the day, amid a broad-based rally in Indian equities.

Bengaluru:

India’s No.2 IT services exporter Infosys’ CEO Salil Parekh has settled charges of violating provisions of insider trading, the country’s markets regulator said on Thursday.

Mr Parekh agreed to pay 2.5 million rupees (around $30,000) for failing to have adequate controls to prevent insider trading, the Securities and Exchange Board of India said. 

Washington:

Salil Parekh, CEO and managing director at Infosys, has joined the US India Strategic and Partnership Forum as its board of directors.

An industry veteran with nearly three decades in the IT services industry, executing business turnarounds and managing successful acquisitions, Mr Parekh in his capacity as Infosys CEO sets the strategic direction of one of India’s most notable IT giants, while nurturing a strong leadership team to drive its execution.

“Salil’s recent addition to the USISPF Board accentuates the success story of Indian IT giants in the US for years. Infosys has been a household name in India, and IT services are one of India’s biggest exports to the United States,” said USISPF president and CEO Mukesh Aghi.

“In an era of digital economy and digital trade, Infosys’ success in the US is a testimony to the growing synergy in tech ties and how India’s robust tech talent plays an integral part in strengthening and growing the tech sector in the United States,” Mr Aghi said.

I am delighted to welcome Mr. Salil Parekh, CEO and MD at @Infosys to @USISPForum‘s Board of Directors.

Salil’s recent addition to the USISPF Board accentuates this success story of Indian IT giants in the U.S.

In an era of digital economy and digital trade, Infosys’ success in… pic.twitter.com/uBu2aEz21p

— Mukesh Aghi (@MukeshAghi) February 22, 2024

USISPF chairman John Chambers said Salil and Infosys’ participation on the USISPF Board will help forge a critical reliance for the two economies by consolidating digital trade, ultimately further establishing India as an innovation partner to the world, which is the organisation’s core mission.

“I’m thrilled to have Salil, a leader with a great track record in the IT industry, join the USISPF Board. Infosys’ impact in the American tech industry has been extremely important, and the company played a vital part in India’s nearly USD 200 billion software exports for 2023,” Mr Chambers said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)