BSE seeks explanation from Infosys on non-disclosure of whistleblower complaint

One of its board members had received the complaints on September 30, according to Nilekani's statement submitted to the stock exchanges on Tuesday.
Infosys (File Photo | Reuters)
Infosys (File Photo | Reuters)

EW DELHI: The Securities Exchange Board Of India (Sebi) and the Bombay Stock Exchange (BSE) have sought a response from the IT major, Infosys for failing to make disclosures about the whistleblower complaint under Regulation 30 of SEBI (LODR) Regulations, 2015.

“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 Whistleblower complaint mentioned in the announcement. In this regards, The Exchange has sought clarification from Infosys Ltd. for non-disclosure of the information about the Whistleblower complaint." the statement from SEBI and BSE said.

The letter by an anonymous employee group complaining about ‘unethical practices of the Infosys CEO, Salil Parekh and CFO, Nilanjan Roy was addressed to its board of directors on September 20 and to the US Securities and Exchange Commission (SEC) on October 3. Nilakeni in his statement to the stock exchanges on October 22 said that the Infosys is looking into the allegations and that both the CEO and CFO have been recused from this matter. 

The announcement came when the Infosys stock recovered somewhat by  1.48% to Rs 652.05  from the previous close of Rs 643 .30 after registering a six-year slump by 16%  at Rs 643.30 compared to the previous close of Rs 767.75 on BSE on Tuesday.

In US, the Infosys  American depository shares fell by 3.01%  the Infosys investors were estimated to have lost over Rs 50,000 crore on a single day after the stock crash. 

Infosys has also hired a law firm, Shardul Amarchand Mangaldas to independently investigate the allegations as well as held consultations with the auditor, EY.

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