New Delhi: Infosys shares spiked by 6.5 percent on Monday after the company denied all allegations made in the whistleblower letter against two of its top officials, and asserted that it was under no obligation to disclose the same.
“There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations,” Infosys said in a regulatory filing dated November 2.
The whistleblowers’ group has claimed that they have voice recording and other evidence of whatever they claimed in the letter.
However, the IT major argued that as per Regulation 30 of the Listing Obligations and Disclosure Requirements (LODR) Regulations, it had no obligation to disclose the letter until and unless an event or information is deemed ‘material’.
“The Anonymous Complaints do not fall within the purview of deemed material events under the LODR Regulations,” Infosys said.
Last month, India’s second-largest software company Infosys faced flak after a letter by an anonymous group of company employees surfaced accusing CEO Salil Parekh and CFO Nilanjan Roy of unethical practices to show profits.
However, following the statement earlier today, the company scrip jumped 3.6 per cent at Rs 712.05 on the BSE. As a result, Infosys shares ended on a high note for the seventh session in a row.
“With respect to the anonymous complaints, there is no prima facie evidence that the company has received until date to corroborate any of the allegations made. In any event, the audit committee retained the services of the law firm, Shardul Amarchand Mangaldas & Co. to investigate the matter,” the company statement read.
“Further, given the circumstances at this stage, where there is complete absence of prima facie evidence and the Anonymous Complaints are still under investigation, the Company is not in a position to determine the concreteness, credibility and materiality of the anonymous complaints. In light of the above, no disclosure under Regulation 30 of the LODR Regulations is required to be made.” the IT firm said.
“As requested, we will update the stock exchanges on the basis of key findings of the investigation reports once these are concluded,” the company added in the clarification statement.
With IANS inputs