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Infosys plunges 16 per cent on whistleblower complaint

INDIA’S IT services giant Infosys on Tuesday (22) plummeted 16 per cent on concerns over a whistleblower complaint which alleges that two of the company's top executives were indulging in unethical practices to increase short-term revenue and profits.

The scrip plunged 15.94 per cent to Rs 645.35 on the Bombay Stock Exchange (BSE).


On the National Stock Exchange (NSE), it tanked 15.99 per cent to Rs 645.

Infosys on Monday (21) had said the whistleblower complaint has been placed before the audit committee as per the company's practice, and that it will be dealt with in accordance with the company's whistleblowers policy.

According to reports, the complaint by a group that calls itself "ethical employees" had alleged chief executive officer Salil Parekh and chief financial officer Nilanjan Roy were indulging in "unethical practices" to boost short-term revenue and profits.

Infosys said in a statement: "The whistleblower complaint has been placed before the audit committee as per the company's practice and will be dealt with in accordance with the company's whistleblowers policy."

In a statement on Tuesday, Infosys chairman Nandan Nilekani said the company's audit committee will conduct an independent investigation on whistleblower allegations.

The committee began consultation with independent internal auditors EY, and has retained law firm, Shardul Amarchand Mangaldas & Co to conduct an independent investigation, Nilekani noted in his statement to the stock exchanges.

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