The US Securities and Exchange Commission (SEC) has initiated an investigation into whistleblower complaints, Infosys said in a statement to stock exchanges today. "The company has been in touch with the Securities and Exchange Commission (SEC) regarding the anonymous whistleblower complaints (Anonymous Complaints) and has learnt that the SEC has initiated an investigation into this matter," the IT company said.
Infosys shares are also listed on US stock exchanges and they have taken a knock after whistleblower claims accusing its top executives of "unethical practices".
"The company will cooperate with the SEC’s investigation. Also, Securities and Exchange Board of India (SEBI) has requested additional information from the company concerning the anonymous complaints. The company will provide the information as per Sebi’s request," Infosys said.
Infosys said "the company is also aware of a securities class action lawsuit that has been filed against the company in federal court in the United States based on the generalized allegations in the anonymous complaints. The company intends to defend itself vigorously in such a lawsuit."
Infosys shares are down 1.3% in early trade today.
Infosys chairman Nandan Nilekani on Tuesday assured investigations to the "fullest extent" into the allegations of unethical practices. "One Board member received two anonymous complaints on September 30, 2019, one dated September 20, 2019 titled 'Disturbing unethical practices' and the second undated with the title, 'Whistleblower Complaint'," Nilekani said in a statement to the exchanges.
Leading exchange BSE 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 through irregular accounting ways. (With Agency Inputs)