Business

Infosys says not received any Sebi request for further audit in whistleblower case

Updated : January 24, 2020 01:57 PM IST

Infosys on Friday said it has not received any request from Sebi for conducting further investigation in the whistleblower case where top executives were accused of rigging the company's balance sheet.

Sources had said market watchdog Securities and Exchange Board of India (Sebi) is likely to call for a forensic audit of books of Infosys as it continues to probe whistleblower allegations of alleged financial irregularities at the company.

Earlier this month, 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 had been accused by anonymous whistleblowers.

"The company has not received any request from Sebi to conduct further audits as reported by media on January 23, 2020," Infosys said in a regulatory filing on Friday.

It added that as disclosed previously, the company had received letters from regulatory authorities seeking information on the anonymous whistleblower investigation.

"The company continues to cooperate with regulatory authorities," Infosys noted.

In one of the letters dated September 20 and signed by 'Ethical Employees', it was alleged that Infosys CEO Salil Parikh as well as its Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not adhering to accounting standards. There was another undated complaint also.

In October, 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 audit committee commissioned a thorough investigation with the assistance of an independent legal counsel.

US market regulator SEC had also initiated a probe into the matter, while Rosen Law Firm had said it was preparing a class-action lawsuit to recover losses suffered by Infosys' investors in the US.

Infosys says not received any Sebi request for further audit in whistleblower case

You May Also Like

Coronavirus News LIVE: No change in November unlock guidelines; India fatality rate drops to 1.5%

Closing Bell: Market gains over 1%, Nifty ends above 11,800; Kotak Mahindra Bank settles 12% higher

October GST collections may cross Rs 1 lakh crore mark

Trending on CNBC-TV18

recommended for you