Country's third largest software services firm Wipro today said it has reached an agreement with US Securities and Exchange Commission (SEC) to formally resolve a six-year old investigation and will pay USD 5 million in civil money penalty.
In a filing to the BSE, Wipro said it "neither admits nor denies the SEC allegations that the company violated certain provisions of the Securities Exchange Act of 1934 (Exchange Act)." "Under the terms of the settlement, the company consents to pay a civil money penalty of USD 5 million, to cease and desist from committing or causing violations of the Exchange Act, and to undertake certain follow through actions," it added.
The SEC has credited Wipro's cooperation and remedial measures in arriving at the settlement, it said.
It added that the settlement is in the "best interests" of the company and its investors to avoid the cost associated with a prolonged litigation.
In December 2009, Wipro self-discovered that an employee embezzled funds amounting to Rs 228 million (about USD 4 million), beginning November 2009. The company was able to substantially recover the embezzled funds and had publicly disclosed the case. The SEC investigation began in September 2010.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
