Wipro to pay $5 million to US SEC to settle 6-yr-old case

Wipro to pay $5 million to US SEC to settle 6-yr-old case
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)." Image Source: Official Website
By PTI
Updated: Sat, Dec 24, 2016
09:42 am
New Delhi , PTI
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Country's third largest software services firm Wipro on Friday said it has reached an agreement with US Securities and Exchange Commission (SEC) to formally resolve a six-year old investigation and will pay $5 million (nearly Rs 33.3 crore) 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 $5 million (nearly Rs 33.3 crore), 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.

ALSO READ: Wipro likely to disappoint again in coming quarters, analysts says

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 22.8 crore (about $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.

On Friday, the stock of Wipro closed down 0.52% or Rs 2.40 at Rs 458.95 on the BSE. 

 ALSO READ: Wipro declines most in three months; down 4% in morning trade 

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