Elon Musk has agreed to step down as chairman of Tesla Inc. for three years and pay a $20 million fine in a deal with the stock market regulatory authority, Securities and Exchange Commission (S.E.C.) to resolve securities fraud charges. The S.E.C. announced the deal on Saturday two days after it sued Musk in federal court for misleading investors over his post on Twitter last month that he had "funding secured" for a buyout of the electric-car company at $420 a share, reports The New York Times.

Under the settlement, which requires court approval, Musk will be allowed to stay as CEO but must leave his role as chairman of the board within 45 days. He cannot seek re-election for three years, according to court filings. He accepted the deal with the SEC "without admitting or denying the allegations of the complaint", according to a court document. The company also agreed to appoint two new independent directors to its board and establish a board committee to oversee Musk's communications, reports CNN.