Whistleblower case: SEC concludes probe; no action expected, says Infosys

Infosys on Tuesday said the US Securities and Exchange Commission (SEC) has concluded the investigation in the whistleblower allegations made last year, and that it does not anticipate any further action by the regulator.

In October last year, Infosys had informed stock exchanges of having received anonymous whistleblower complaints alleging certain unethical practices by the top management. It then started a probe into the matter and roped in external investigators.

The whistleblowers had accused CEO Salil Parekh of unethicla prcatices and unaccounted travels. The whistleblower, who claimed to be part of Infosys' finance team, has also alleged that Parekh was not able to control cost and was leading the company towards a low margin regime. In the three-page letter, the whistleblower has also launched vicious personal attacks against Parekh.

US market regulator SEC had also initiated a probe into the matter.

In a regulatory filing on Tuesday, Infosys said it has received a notification from the SEC stating that its investigation investigation has concluded. The company does not anticipate any further action by the SEC on this matter."

The Bengaluru-based company said it has responded to all the inquiries received from Indian regulatory authorities and that it will continue to cooperate with the authorities if there are any additional requests for information.

In January this year, Infosys had said its audit committee had found no evidence of financial impropriety or executive misconduct, virtually giving a clean chit to CEO Salil Parekh and CFO Nilanjan Roy who were accused by anonymous whistleblowers of rigging the company's balance sheet.