Infosys shares nosedived nearly 16 per cent on Tuesday in their worst single-day drop in over six years, 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.
Here are 10 things to know about this big story: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.The sharp losses in Infosys shares followed the worst fall in the company's American Depositary Receipts since 2013.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," Mr Nilekani said.One of the complaints "largely deals with allegations relating to the CEO's international travel to the US and Mumbai", the Infosys chairman added.He also said that the CEO and CFO have been recused from this matter to ensure independence in these investigations.The audit committee has retained the law firm of Shardul Amarchand Mangaldas - Co.
to conduct an independent investigation, and the company's board will take appropriate steps based on the outcome of the investigation, Mr Nilekani said.The allegations come just two years after India's No.
2 software services firm endured a shake-up that saw its top boss Vishal Sikka leave the company.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.Follow TheIndianSubcontinent for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.Subscribe to our YouTubechannel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.