A note, alleged to have been written in October by the company’s employees, said Chief Executive Salil Parekh advised them and others to circumvent approvals for major transactions, anticipating a negative impact from reduced income on stocks.
IT services giant Infosys Ltd said it received no evidence on Monday to support the claims in last month’s whistleblower letter, sending shares up to 6.5% in the morning market.
A note, alleged to have been written in October by the company’s employees, said Chief Executive Salil Parekh advised them and others to circumvent approvals for major transactions, anticipating a negative impact from reduced income on stocks.
“There is no supporting evidence that the company has received along with these anonymous complaints to support the allegations,” said Infosys in a letter dated November 2 to the National Stock Exchange (NSE).
Last month, Infosys said the U.S. Securities and Exchange Commission (SEC) launched a sample of whistleblower claims that the Indian software services firm used “unethical practices” to boost revenue and profit.
The allegations were still under investigation and the firm was unable to ascertain “concreteness, reliability, and materiality of complaints,” said the company based in Bengaluru in its letter to the NSE.
The letter was in reply to the company’s request by the NSE to clarify why it had not disclosed the letter’s receipt.
Infosys said since the allegations were not deemed “material” under Indian regulation, the company was not obligated to disclose them.
Source: IndiaToday
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