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Infosys spurts after SEC completes probe on whistleblower case

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Infosys was up 7.76% to Rs 567.55 after the company said the US Securities & Exchange Commission has concluded its investigation on the whistleblower allegations.

As previously disclosed, in connection with the audit committee's investigation into certain whistleblower complaints which concluded in January 2020, Infosys cooperated with an investigation by the United States Securities & Exchange Commission (SEC) regarding the same matters, Infosys said in a statement on Tuesday, 24 March 2020.

Infosys said it received notification from the SEC that it has concluded its investigation and the company does not anticipate any further action by the SEC on this matter. Infosys added that it has also responded to all the inquires received from the Indian regulatory authorities. The IT major said it will continue to cooperate with the authorities should there be any additional requests for information.

On 21 October 2019, an anonymous whistleblowers accused the chief executive officer (CEO) Salil Parekh and chief financial officer (CFO) Nilanjan Roy of "unethical practices".

In November 2019, Infosys said that the anonymous complaints make certain allegations. There is no supporting evidence to substantiate the allegations. Two of the anonymous complaints were received on 30 September 2019. On 16 October 2019, the company was made aware of a letter that refers to 30 September 2019 complaint purportedly written to the office of whistleblower protection program, Washington D.C.

The anonymous complaints were placed before the audit committee and the non-executive members of the board, in accordance with the whistleblower practice of the company.

After unveiling Q3 results in January 2020, Infosys announced conclusion of the independent investigation into allegations contained in the anonymous whistleblower complaints disclosed earlier. The audit committee determined that the allegations are substantially without merit. It concluded that no restatement of previously announced financial statements or other published financial information is warranted.

Infosys' consolidated net profit soared 12.23% to Rs 4,457 crore on a 2.04% rise in net sales to Rs 23,092 crore in Q3 December 2019 over Q2 September 2019.

Infosys is engaged in consulting, technology, outsourcing and next-generation services.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 24 2020. 11:27 IST