Kiran Mazumdar Shaw, the Chairman of Biocon and lead independent director of Infosys, has reportedly settled with the Securities and Exchange Board of India (SEBI) a case of alleged delay in making disclosure regarding change in her shareholding in the IT company by paying a settlement charge of over Rs. 3 lakh.
She had allegedly violated ovisions of the Prohibition of Insider Trading (PIT) regulations. According to a SEBI examination, Shaw had delayed in making the requisite disclosures with respect to change in her shareholding in the company.
The regulatory body had sent Shaw a notice of settlement before initiating proceedings. It had intimated 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.
Shaw then filed a settlement application that did not require her to admit or deny the default, and remitted Rs 3,01,758 in September 2019. SEBI then disposed of the proceedings that may be initiated for the defaults.
In February, Infosys had said that 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 Shaw.
