Infy slaps fine on its CEO

Wednesday, January 23, 2008

Infy slaps fine on its CEO

BANGALORE, INDIA: This is one model worth emulating. Infosys Technologies has fined its CEO Kris Gopalakrishnan for a technical violation of its insider trading rules.

According to the statement to the United States Securities and Exchange Commission, the company has said that Gopalakrishnan had inherited 12,800 equity shares from his mother on December 24, 2007 but had inadvertently failed to notify the company within one business day after the change in his shareholding.

This act is considered a violation of the firm's insider trading rules. The company has imposed a fine of Rs five lakh on its CEO, which would be donated to charity.

Besides Gopalakrishnan, Jeffrey Lehman, an independent director, also has been fined $2,000 for the same violation.

In August 2007, in a similar move, Infosys Technologies had slapped a fine of Rs 5 lakh on Srinath Batni, director of the company, for breaking the company's code of conduct.

Batni had then sold 10,000 equity shares of the company.


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