The Indian tech giant Infosys paid RS 34 lakh to settle a case related to alleged lapses in severance payment to Securities Exchange Board of India(SEBI).
SEBI probed issues pertaining to the severance payment made to Rajiv Bansal who had resigned from the company on October 11, 2015.
“The examination prima facie revealed that the severance payment was not in accordance with the remuneration policy and the same was without the approval of the Nomination and Remuneration Committee,”the market regulator said in a settlement order dated February 15.
The reports shows that the company failed to timely disclosure and audit approval.“It is a negotiated settlement between the capital market regulator and an entity by paying a penalty or by undergoing a voluntary ban from the stock markets. Infosys, which has most of its shares traded on the exchanges, opted for a settlement,”The Economic Times reports stated.
The High Powered Advisory Committee in its meeting held on February 26, 2018 considered the settlement terms proposed and recommended the case for settlement upon payment of Rs 34,35,000 by the applicant as settlement charges.The whole panel members accepted the deal on January 22,this year and thus Infosys made the payment on February 4.