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MCA seeks details from Infosys on whistleblower complaint

The SEC has initiated a probe against the company following the complaint that has alleged 'unethical practices' by the top management of Infosys, listed in India and the US.

Updated: Oct 29, 2019, 04.22 PM IST
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Agencies
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“The company will cooperate with the SEC's investigation," it said.
NEW DELHI: The Ministry of Corporate Affairs (MCA) has sought information on the whistleblower complaint, made against Infosys management about irregularities, to the US Securities and Exchange Commission (SEC) and is keeping a close watch.

“This is a usual practice... Details are sought from a company in such situations,” an official said.

The SEC has initiated a probe against the company following the complaint that has alleged “unethical practices” by the top management of Infosys, listed in India and the US. Infosys told ET it doesn’t have anything to add to the statement issued last week.

“The company has been in touch with the SEC regarding the anonymous whistleblower complaints (anonymous complaints) and has learnt that the SEC has initiated an investigation into this matter,” the company had said in an October 24 release. “The company will cooperate with the SEC's investigation.”

Infosys had said it was “aware of a securities class action lawsuit” in the US, based on the complaint. “The company intends to defend itself vigorously in such a lawsuit,” Infosys had said. The Securities and Exchange Board of India (Sebi) has also sought information from the company on the complaint.

US-based Rosen Law Firm had previously said it was preparing a class action lawsuit to recover losses suffered by Infosys investors in the US.

Infosys chairman Nandan Nilekani said last week that a whistleblower complaint dated September 20 as well as an undated one had been received by a board member on September 30. These were placed before the audit committee on October 10 and the company's non-executive board members on October 11, he had said. Infosys announced its second-quarter results on October 11.

Nilekani had also said that the audit committee has retained law firm Shardul Amarchand Mangaldas & Co. to conduct an independent investigation into the issue.

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