Infosys files settlement plea with Sebi on ex-CFO severance pay

Infosys, India's second-largest IT services company, on Wednesday said it has approached market regulator Sebi to settle a probe into CFO severance pact.  

The company had constituted a committee to probe into alleged disclosure lapses involving the severance pact with former chief financial officer (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 the company in the regulatory filing.

The settlement application pertains to the severance agreement with the former CFO in October 2015. The severance package was among the concerns raised by Infosys co-founder N R Narayana Murthy with the Board and CEO Vishal Sikka earlier this year.

The application is made under Regulation 3 read with Schedule II(1)(12) of the Sebi (Settlement of Administrtive and Civil Proceeding) Regulations, 2014.  

Infosys will provide an update upon the conclusion of the confidential settlement process.

The software giant wants to resolve allegations against the company of not seeking prior and separate approval of the Nomination and Renumeration Committee and the Audit Committee in relation to the CFO's settlement process.  

When Bansal left in 2015, Infosys had agreed to pay him Rs 17.38 crore as severance, about two years of pay. But the company paid out only about Rs 5 crore before suspending the payments.