Dr Reddy’s Share Price in Focus; SEC Closes Probe with No Enforcement Action

Dr Reddy’s Laboratories Ltd announced it has received a letter from the US Securities and Exchange Commission (SEC) dated 23 February 2026 stating that the regulator has concluded its investigation and does not intend to recommend any enforcement action against the company at this time. 

The SEC noted that the communication has been issued under the framework of Securities Act Release No. 5310. It added that the notice should not be taken as confirmation that the company has been cleared, or that no future action may arise from the staff’s investigation. 

Background to the Matter 

The development relates to an anonymous complaint disclosed by the company on 19 November 2020. The complaint alleged improper payments to healthcare professionals in Ukraine and potentially in other markets. 

At the time, Dr Reddy’s said such allegations, if proven, could amount to violations of US anti-corruption laws, including the US Foreign Corrupt Practices Act (FCPA). The company initiated a detailed internal investigation following the complaint. 

Engagement with Authorities 

As per the filing, the company informed the US Department of Justice (DOJ), the SEC and the Securities and Exchange Board of India (SEBI) about the matter. The disclosure was made on February 24, 2026 . 

A committee of the Board directed the appointment of a US law firm to conduct the investigation. In earlier disclosures, the company had stated that such inquiries could result in regulatory proceedings in the United States or other jurisdictions and could lead to civil or criminal sanctions under applicable laws . 

Dr Reddy’s said it cooperated with the SEC and DOJ, including providing documents, information and submissions relating to the original complaint as well as additional complaints concerning certain other markets. 

Current Position 

With the SEC stating that it does not intend to recommend enforcement action at this stage, the investigation stands concluded from the regulator’s side for now. The regulator has clarified that its communication should not be interpreted as a formal exoneration. 

Read More: Cabinet Approves Enhanced Investment for POWERGRID: Investment Limit to ₹7,500 Crore! 

Dr Reddy’s Lab Share Price Performance  

As of February 25, 2026, 10:05 am, Dr Reddy’s Laboratories share price was trading at ₹1,287.20, 1.00% decrease from the previous closing price. 

Conclusion  

With the SEC concluding its investigation, no enforcement action is being recommended at present. The regulator has noted that this does not preclude the possibility of future action. 

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