After conducting a preliminary probe, the country’s market regulator has found no merit in a whistleblower’s allegations of corporate governance violations by software major Infosys.
The Securities and Exchange Board of India (SEBI) will close the matter at this stage, according to a Business Standard report.
The whistleblower claimed Infosys had overpaid for its acquisition of Israeli firm Panaya and also raised doubts over the hefty severance payout to former Chief Financial Officer Rajiv Bansal.
As part of the probe, SEBI Chairman Ajay Tyagi and other regulator officials met with the Infosys management. SEBI concluded that the requisite procedures were followed and appropriate disclosure were made in both cases.
It referred to the reports of the audit and remuneration committee of Infosys while finding that there were no corporate governance violations.
Bansal received Rs 17.38 crore on leaving Infosys after 17 years at the company. The payout was among several concerns about corporate governance that were raised by Infosys founders in a letter to the Board in January that led to friction between the two parties that eventually became a public row.
Infosys acquired Panaya in 2015 for USD 200 million in a deal that raised eyebrows, with critics claiming the money paid was six times more than the company's revenue.
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