Bengaluru, Oct 24 (IANS) Global software major Infosys on Thursday said American capital markets regulator Securities and Exchange Commission has initiated a probe into the alleged unethical business practices of Chief Executive Salil Parekh and Chief Financial Officer Nilanjan Roy.
“The Company has been in touch with the Securities and Exchange Commission regarding the anonymous whistleblower complaints and has learnt that the SEC has initiated an investigation into this matter,” said Infosys in the statement.
Infosys pledged to cooperate with SEC’s investigation.
SEC’s mission is to protect investors, maintain fair, orderly and efficient markets and enable capital formation.
Infosys shares are traded on American stock exchanges as American Depository Receits.
A few anonymous employees Infosys have accused Parekh and Roy of unethical practices for many quarters, along with concerns on Parekh’s travels to the US and Mumbai.
“Parekh and Roy have been resorting to unethical practices for many quarters, as evident from their e-mails and voice recordings of their conversations,” said the complainants, who called themselves ‘ethical employees’ in a 2-page letter to the city-based IT behemoth’s board of directors on September 20, a copy of which has been accessed by IANS.
According to the whistleblowers, Parekh directed the employees to cook account books to show favourable numbers and coerced staffers not to reveal crucial data to board members.
Updating the bourses about the Indian capital markets regulator Securities and Exchange Board of India (SEBI), the Bengaluru-based company said the regulator demanded additional information about the anonymous complaints.
Infosys said the additional information will be provided to SEBI.
Infosys stated that it is aware of the class action lawsuit filed against it in a federal court in the US because of the many whistleblowing complaints.
“The Company intends to defend itself vigorously in such a lawsuit,” Infosys stated.
At 10 a.m., Infosys shares were trading 1 per cent lower at Rs 644.25 on the BSE.