Infosys Jumps 10% After SEC Concludes Whistleblower Allegations

On Tuesday, shares of Infosys Ltd surged 10 percent to Rs 579 after the IT giant informed the stock exchanges that it has received a notification from the US SEC on the conclusion of its investigation in the recent whistleblower allegations and that it "does not anticipate any further action by the SEC on this matter."

Infosys: Quotes, News

BSE 1332.3026.15 (-1.96%)

NSE 1334.4028.2 (-2.11%)

"As previously disclosed, in connection with the Audit Committee's investigation into certain whistleblower complaints which concluded in January 2020, the Company cooperated with an investigation by the United States Securities & Exchange Commission ("SEC") regarding the same matters. The Company received notification from the SEC that the SEC has concluded its investigation and the Company does not anticipate any further action by the SEC on this matter," the statement said.

"The Company has also responded to all the inquires received from the Indian regulatory authorities and Company will continue to cooperate with the authorities should there be any additional requests for information," it added.

It September 2019, anonymous whistleblowers had made a slew of allegations against CEO Salil Parekh and CFO Nilanjan Roy, claiming they were using "unethical" practices to generate more profits and revenues.

These mails were also sent to the US markets regulator and were apparently backed up by evidence to support these claims.

In January, Infosys said that its independent audit committee had issued a clean chit to the top leadership after a detailed probe into the allegations.