As the probe into the allegations of "unethical practices" deepens with Sebi and US Securities and Exchange Commission investigating the matter, Infosys has also stepped up efforts on its part to allay fears of its investors. Infosys' audit committee has retained law firm Shardul Amarchand Mangaldas & Co to conduct an independent probe into the allegations. The company has both Shardul Amarchand and Ernst & Young, its auditor, to submit the final report on these allegations in the next two weeks.
"The (company) has asked investigators to try and complete (the process) as soon as possible, as short as two weeks," The Economic Times quoted a company source as saying, adding that the tech giant would "follow the rule book, whatever be the result".
Infosys said both the complaints made by the group called 'Ethical Employees' had been placed before the Infosys audit committee and its non-executive members. The company placed "both complaints before the audit committee on October 10, 2019, and before the non-executive members of the Board on October 11, 2019."
Notably, both Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy have been recused to ensure impartial investigation but they would continue to meet clients and investors to allay fears around crisis at India's one of the biggest tech services companies.
Infosys has told the stock exchanges the US SEC has also launched an investigation into whistleblower allegations against Parekh and Roy, and that the company was ready to cooperate. "The company has been in touch with the Securities and Exchange Commission ("SEC") regarding the anonymous whistleblower complaints ("anonymous complaints") and has learnt that the SEC has initiated an investigation into this matter. The company will cooperate with the SEC's investigation," Infosys said.
It said it's also aware of a lawsuite filed against the company in the US. "The company intends to defend itself vigorously in such a lawsuit," it told the exchanges on Thursday. Rosen Law Firm, a global investor rights law firm, confirmed on Monday that it was "preparing a class action lawsuit to recover losses suffered by Infosys investors".
In a complaint letter to the board of Infosys and the US Securities and Exchange Commission (SEC) last month, an anonymous group of employees had accused Parekh and Roy of using "unethical practices" to boost revenue and profit for the company. Concerning the developments in Infosys, the Securities and Exchange Board of India (SEBI) has also requested it for additional information related to the complaints. Meanwhile, Infosys share price declined 2.44 per cent to Rs 634.75 on Thursday as compared to the previous day close of Rs 650 on the Bombay Stock Exchanges.
Edited by Manoj Sharma