SEBI in September had charged the CFO of Divis Laboratories and 7 other members of insider trading. Now, all 8 people have settled the case with SEBI without admitting or denying the findings of the probe.

They have agreed to pay a cumulative amount of around Rs 31 million versus the alleged unlawful gain of Rs 9.7 million.

According to Macquarie, while the settlement does remove the overhang for a short period, they will closely monitor any governance lapses in the company. Macquarie continues to maintain an outperform rating on the stock with a target price of Rs 3,764 per share