Not received any request from Stock market regulator Sebi for conducting further investigation in the whistleblower case where company’s top executives were accused of rigging the company’s balance sheet, Infosys said on Friday.
According to the reports, Sebi is likely to call for a forensic audit of books of Infosys as it continues to probe allegations made by the whistleblower against the top executives.
“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 said in a statement to the BSE, adding, “The Company has not received any request from SEBI to conduct further audits as reported by media on January 23, 2020.”
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.
In September last year, a letter signed by a group of anonymous ‘Ethical Employees’, alleged that company’s CEO Salil Parikh and CFO Nilanjan Roy were 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.
(With input from agencies)