Infosys has submitted a settlement application with Sebi to settle a probe into alleged disclosure lapses involving the severance pact with former CFO Rajiv Bansal.
Infosys, India’s second largest IT services exporter said it has submitted an settlement application with the Securities and Exchange Board of India (Sebi) to settle a probe into alleged disclosure lapses involving the severance pact with former CFO Rajiv Bansal. “The settlement application process is based on an undertaking that the applicant will neither admit nor deny the finding of fact or conclusion of law,” said Infosys in a regulatory filing to the BSE on Wednesday. Infosys had entered into a severance agreement with former CFO in October 2015 who subsequently resigned. The dispute between Infosys and Bansal is already under arbitration as the former the halted the remaining amount of the money.
According to Infosys, through the settlement process it wants to resolve the allegations relating to the company not seeking prior and separate approval of the nomination and remuneration committee and the audit committee in relations to the severance agreement entered into with the former CFO. The settlement application also pertains to the disclosures to the severance agreement, cessation of payments and the initiation of arbritrations against the former CFO. The severance agreement with Rajiv Bansal is a controversial issue between the then Board of Infosys led by R Seshasayee and founder N R Narayana Murthy. Murthy had repeatedly questioned the high amount of severance package to Bansal and criticised the then board of Infosys for adhering to standards of corporate governance. Infosys had decided to pay Bansal Rs 17.38 crore as severance package following his resignation but it disbursed only Rs 5 crore. “Certain payments to Rajiv under the agreement have been suspended pending certain clarifications with regard to such rights and obligations,” it had said in a statement. Infosys said it will provide an update upon the conclusion of the confidential settlement process.