Infosys in mess over disclosure
Troubles seem mounting for Infosys. The software major faces more trouble ahead as it has failed to inform the stock exchanges about the complaints received from whistleblowers, which could lead to more trouble at the hands of market regulator Securities and Exchange Board of India.
The Sebi has reportedly begun its probe into alleged non-disclosure of price-sensitive information by the Infosys management and also corporate governance lapses alleged by the whistleblower group. The regulator is also examining possible insider trading in the company's securities.
The regulator has reportedly asked the stock exchanges to collate trading data of Infosys shares as well as derivative positions, while details are being sought about alleged non-disclosure of key information.
The regulator may also summon the company's top management and others, while information might be sought from some board committees, including those dealing with audit and other financial matters at the company, depending on progress in the investigation.
The role of independent directors may also come under the scanner in case it is found they did not press for timely disclosure and other necessary actions after receipt of the whistleblower complaint.
Stock exchange BSE has sought clarifications from Infosys, for which the reply was awaited at the press time.
The BSE has sought clarifications from the company about the nondisclosure of the whistleblower complaint, which it received earlier last month and was announced by company Chairman Nandan Nilekani on October 22.
“It is observed that Infosys has not made any disclosures under Regulation 30 of SEBI (LODR) Regulations, 2015, with respect to.receipt of whistle blower complaint mentioned in the announcement (made by Nilekani),” the BSE communication said.
The Infosys stock was in focus for second consecutive session, In volatile trading, the stock dipped to a low of Rs 615 on the BSE, but later recovered to touch a high of Rs 656.40 before finally closing 1.16 per cent up at Rs 650.75.