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SEBI, BSE ask Infosys why it didn't disclose whistleblower complaints

Infosys has launched a thorough investigation into the "unethical practices" complaints against CEO Salil Parekh and CFO Nilanjan Roy and recused them to ensure an impartial probe

twitter-logoBusinessToday.In | October 23, 2019 | Updated 14:23 IST
SEBI, BSE ask Infosys why it didn't disclose whistleblower complaints
Infosys investors also lost over Rs 50,000 crore in market wealth since Tuesday.

Sebi and BSE have sought clarification from tech giant Infosys Ltd for not disclosing information regarding the whistleblower complaint. "Infosys Ltd vide an announcement date October 22, 2019, titled "Statement", submitted Statement attributable to Nandan Nilekani, Chairman of Infosys Limited, wherein it is mentioned that Infosys Ltd had received whistle blower complaints. However, it is observed that Infosys Ltd has not made any disclosures under Regulation 30 of SEBI (LODR) Regulations, 2015, w.r.t. receipt of Whistle blower complaint mentioned in the announcement," the Securities and Exchange Board of India as well as BSE said in a statement, adding that the reply from Infosys is awaited.

Infosys on Tuesday said they were investigating the "unethical practices" complaint against Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy. Both have been recused to ensure an impartial probe. 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."

Also read: Infosys pays for CEO Salil Parekh's weekly personal trips, alleges whistleblower letter

Infosys investors also lost over Rs 50,000 crore in market wealth as the Bengaluru-based IT firm faced allegations of indulging in 'unethical' practices. Market capitalisation of Infosys fell to Rs 2.7 lakh crore on Wednesday compared to the previous close of over Rs 3.2 lakh crore on Friday.

Rosen Law Firm, a global investor rights law firm, said in a statement on Monday that it is "preparing a class action lawsuit to recover losses suffered by Infosys investors". The New York based law firm has put out a "Infy Loss Notice", adding that it "continues to investigate potential securities claims on behalf of shareholders of Infosys Limited (NYSE: INFY) resulting from allegations that Infosys may have issued materially misleading business information to the investing public".

Meanwhile, Infosys share price recovered some lost ground in early trade on Wednesday on value buying, a day after the stock plunged to its six-year low. Infosys share price rose 1.57 per cent to Rs 653.4 compared to the previous close of Rs 643.3 on BSE on Wednesday. Infosys share has gained after three days of consecutive fall.

Edited by Manoj Sharma

Also read: Infosys Chairman Nilekani recuses CEO Parekh, CFO Roy from investigation of allegations

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