BSE Asks Infosys To Explain Its Non-Disclosure Of Whistleblower Complaint
BSE said it is observed that Infosys has not made any disclosures under Regulation 30 of SEBI (LODR) Regulations 2015.
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BSE Ltd (earlier known as Bombay Stock Exchange) on Wednesday asked Infosys to explain why it did not make a disclosure about a whistleblower complaint which alleged that the company's top executives were following unethical practices to shore up profits by using irregular accounting methods.
A day earlier, Infosys submitted a statement attributable to Chairman Nandan Nilekani in which he mentioned that the software major had received whistleblower complaints. However, BSE said it is observed that Infosys has not made any disclosures under Regulation 30 of SEBI (LODR) Regulations 2015. "In this regard, the exchange has sought clarification from for non-disclosure of information about whistleblower complaint. The reply is awaited," it said in a statement.
An anonymous group calling itself 'ethical employees' alleged in a letter to the board of Infosys and the US Securities and Exchange Commission (SEC) that company's Chief Executive Officer (CEO) Salil Parekh and Chief Financial Officer (CFO) Nilanjan Roy took disturbing unethical measures to boost profits and short-term revenue.
The complainants said they have emails and voice recordings to substantiate the claims.
Nilekani said on Tuesday that the IT firm has engaged law firm Shardul Amarchand Mangaldas to conduct an independent probe. Besides, the company's statutory auditors Deloitte India has also been completely updated on this matter post the board meeting of October 11.
To ensure independence in these investigations, the CEO and CFO have been recused from this matter.