Infosys investigation prima facie finds no proof on whistleblower complaints

Indian multinational corporation Infosys, found no evidence to support the allegations in a whistleblower letter from last month, sending shares up as much as 6.5 per cent in morning trade.

The letter claimed to have been written by employees of the company in October, said Chief Executive Salil Parekh instigated them and others to bypass approvals for large deals, fearing a negative impact on shares from reduced profit.

In a letter to the National Stock Exchange (NSE) dated November 2 Infosys said, “There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations.”

The company last month said that the US Securities and Exchange Commission (SEC) had launched a probe into whistleblower claims that the Indian software services firm used ‘unethical practices’ to boost revenue and profit.

The complaints were still under investigation and the company was not in a position to determine “concreteness, credibility and materiality of complaints,” the firm said.

The National Stock Exchange requested the company to explain why it had not disclosed the receipt of the letter.

Infosys said since the allegations were not deemed “material” under Indian regulation, the company was not obligated to disclose them.

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