Kiran Mazumdar Shaw Reaches A Rs 3.01 Lakh Settlement With Market Regulator SEBI On Infosys Insider Trading Case
 Kiran Mazumdar Shaw Reaches A Rs 3.01 Lakh Settlement  With Market Regulator SEBI On Infosys Insider Trading Case Biocon CMD Kiran Mazumdar Shaw (Twitter/Kiran Mazumdar Shaw)

Kiran Mazumdar Shaw, lead independent director of IT major Infosys, has reached a settlement with Securities and Exchange Board of India (SEBI) over a case of delay in making disclosure regarding change in her shareholding in the IT company.

Kiran Mazumdar Shaw, who is also a chairman of Biocon, was alleged to have violated provisions of the Prohibition of Insider Trading (PIT) regulations.

In its order , SEBI said that it had conducted an examination in the matter of Infosys Limited and observed that Kiran Mazumdar Shaw delayed making the disclosures as required under Regulation7(2)(a)of the SEBI (Prohibition of Insider Trading) Regulations, 2015,in respect of change in hershareholding in Infosys.

The SEBI said that before proceeding further and initiating proceedings against her, the regulator sent notice of settlement to her, intimating that the proceedings may be settled and disposed of upon filing of an application settlement mechanism of SEBI along with remittance of settlement amount of over Rs 3.01 lakh.

The SEBI orded added that Kiran Mazumdar Shaw filed a settlement application without admitting or denying the default and remitted Rs 3,01,758 in September 2019.

"This order disposes of the proceedings that may be initiated for the defaults," SEBI said in an order passed on Wednesday.

SEBI added that enforcement actions including commencing proceedings against the applicant may be taken if any representation made by the applicant is subsequently discovered to be untrue.

In February this year, Infosys disclosed said that Kiran Mazumdar Shaw had inadvertently through her portfolio management services sold 1,600 shares of the company without obtaining pre-clearance of trade.

Following a review by the audit committee of the company's board of directors that determined that there was a violation of the Infosys' insider trading policy and the PIT norms, a penalty of Rs 9.5 lakh was imposed on Mazumdar Shaw.

The IT firm said even though the trade was carried out by the portfolio manager without the knowledge of Kiran Mazumdar-Shaw, there was violation of the company’s Insider Trading Policy and the Sebi (Prohibition of Insider Trading) Regulations, 2015.

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