Business

Kiran Mazumdar Shaw settles Infosys trade issue with market regulator

Kiran Mazumdar Shaw settles Infosys trade issue with market regulator
BENGALURU: Infosys’s lead independent director and Biocon chairman Kiran Mazumdar-Shaw has filed an application for settlement with markets regulator Sebi on an insider trading charge. She will pay Rs 3 lakh as settlement charge without admitting or denying any of the findings. “This order disposes of the proceedings that may be initiated for the defaults,” Sebi said in an order on Wednesday.

In February, Mazumdar-Shaw is said to have inadvertently, through her portfolio management services, sold 1,600 shares of Infosys without obtaining pre-clearance of trade. The trade was said to have been carried out by the portfolio manager without Mazumdar-Shaw’s knowledge.

Infosys’s audit committee, which is responsible for review of compliance with the insider trading policy, was notified of this matter. The audit committee said there was a violation of the insider trading policy and Sebi’s prohibition of insider trading regulations and therefore imposed a penalty of Rs 9.5 lakh on Mazumdar-Shaw. That amount was payable to a charitable organisation of her choice.