Infosys Shares Plunge 16% After Whistleblowers Allege Unethical Practices By CEO

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Infosys shares nosedived nearly 16 per cent on Tuesday, a day after India’s second largest IT services company said it had received anonymous whistleblower complaints alleging certain unethical practices. In the complaint, whistleblowers accused Infosys CEO Salil Parekh of leading an effort to shore up profits through irregular accounting. The complaints “have been placed before the Audit Committee as per the Company’s practice and will be dealt with in accordance with the Company’s whistleblower policy”, Infosys said in a regulatory filing on Monday.
On the Bombay Stock Exchange (BSE), Infosys shares opened 10 per cent lower at Rs. 645.35 apiece, and plunged to as low as Rs. 645.35 in the first few minutes of trade, down 15.94 per cent compared to their previous close. The Infosys shares fell as much as 60 per cent to Rs. 645.00 apiece on the National Stock Exchange (NSE) at the lowest level in morning.

In a statement released on Tuesday morning, Infosys Chairman Nandan Nilekani said the two anonymous complaints have been placed before the company’s Audit Committee on October 10, 2019 and the non-executive members of the board on October 11, 2019.

“These Complaints are being dealt with in an objective manner. The undated whistleblower complaint largely deals with allegations relating to the CEO’s international travel to the US and Mumbai,” Mr Nilekani said.

At 9:47 am, Infosys shares traded 12.86 per cent lower at Rs. 669.05 apiece on the BSE, sharply underperforming the benchmark Sensex index which was down 0.10 per cent amid volatile trade.

Source By NDTV

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