Shares of information technology firm Infosys rose 6.5% during morning trade on Monday after the company said it has no evidence to support the allegations of “unethical practices” flagged by unidentified whistleblowers. At 2.28 pm, the company’s shares traded at Rs 708.20 on the BSE.
The whistleblowers, who called themselves “ethical employees”, told the IT major’s board of directors on September 20 that Infosys Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy had fudged financials and inflated profits. The whistleblowers added that they had emails and voice recordings to prove their allegations. Parekh, the whistleblowers alleged, had made derogatory and sexist comments about board members DN Prahlad, D Sundaram and Kiran Mazumdar-Shaw.
“There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations,” Infosys said in a letter to the NSE on Saturday, according to Reuters. It, however, added that the complaints were still under investigation.
The letter was in reply to the National Stock Exchange’s request to clarify why the company had not disclosed the whistleblower complaint to the bourses. Infosys said it was not obligated to disclose the complaints since the allegations were not deemed “material” under Indian rules. The IT company said it will “update the stock exchanges on the basis of key findings of the investigation reports once the [investigations] are concluded”, reported Mint.
Now, follow and debate the day’s most significant stories on Scroll Exchange.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!