InGovern, a proxy advisory firm, has said the investors will lose faith in Infosys if the company does not put out the findings of the investigation conducted by the firm's audit committee into the allegations of financial irregularities.
Infosys shares came under heavy pressure on Tuesday on whistleblower complaints alleging that CEO Salil Parekh and CFO Nilanjan Roy were involved in unethical practices for many quarters. The complainants, a group of anonymous employees, also alleged that Parekh was bypassing reviews and approvals for large deals.
In response to the complaints, chairman Nandan Nilekani issued a statement saying that the company's audit committee will conduct an independent investigation on the same.
“The company could have been slightly more proactive in communicating the whistleblower’s complaints itself to investors but the fact is that they have now appointed a law firm to investigate... investors will lose faith if there is delay or entire picture is not put out," said Shriram Subramanian, founder and MD of In-Govern, in an interview with CNBC-TV18.
“At the end of the day, investors want to be sure that they can trust Infosys. So the moment they have commissioned the investigation, at that time at least they could have put out a one-pager... this is not the first experience, they should have been much more proactive in putting that out to the investors,” he added.