NSE, BSE seek clarification from Infosys on whistleblower emails on Panaya
- Modicare gets Rs10,000 crore allocation, to be fully functional by October
- Market volatility will rise in short-term as elections near: Rana Gupta
- Doing business in India: ‘Substance’ over ‘form’ in transfer pricing regime
- Hong Kong can be India’s gateway to China: Gautam Bambawale
- Jerome Powell moves to normalize US monetary policy
Bengaluru: The National Stock Exchange of India Ltd and BSE Ltd have sought clarifications from Infosys Ltd on claims made in two anonymous emails against management and board of the company, which said it had started a probe into the allegations.
For now, Infosys management, led by chief executive officer Vishal Sikka, have strongly denied any charges of impropriety, and termed the charges malicious and aimed at tarnishing the image of India’s second largest software company and its management.
“This is in response to the letters dated February 15 and February 21, 2017 from the National Stock Exchange of India Limited and the letter dated February 21, 2017 from the BSE Limited on the status of the whistleblower complaints received by the company as reported in certain sections of the media. The whistleblower complaints have been placed before the Audit Committee and as is normal practice, in accordance with the company’s Whistelblower Policy, the Audit Committee is taking steps to initiate an investigating into the allegations made,” said a statement sent by Infosys to the stock exchange on Wednesday.
Two emails, purportedly written by an anonymous whistleblower, dated 12 February and 19 February, were sent to Mint and copied to senior executives of the Securities and Exchange Board of India (Sebi).
Mint is not disclosing all the contents of the emails for lack of confirmation. Some claims made in the two emails can be confirmed including a walkout by then chief financial officer Rajiv Bansal from a 15 February 2015 meeting where board members of the software services company were asked to approve a proposal to buy Israeli automation technology firm Panaya Ltd.
Bansal walked out about 30 minutes into the meeting because he did not support the proposal, Mint reported on 21 February.
On Monday, Infosys said in the statement: “We categorically state that no member of the Infosys management team was involved in any prior investments in Panaya, and insinuations that anyone from the management team at Infosys benefitted from this acquisition are misleading and slanderous.”
“Regardless of the malicious intent of this anonymous letter, the company will pursue its normal course of action and investigate the charges made”
Infosys did not disclose details of this investigation but a spokeswoman clarified that more details on this investigation will be shared by the company in due course of time.
“As stated before, we will respond to all queries received either directly or from the regulatory authorities, as per our process.”