Infosys pays Rs 34 lakh to settle case with Sebi over severance payment

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.