• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney master your money
Moneycontrol

Home » News » Business

Feb 17, 2017, 04.33 PM | Source: Moneycontrol.com

SEBI to seek response from Infosys on whistleblower letter

The hefty payout to former CFO Rajiv Bansal and the acquisition of Panaya were among the issues raised by the whistleblower.

Like this story, share it with millions of investors on M3

SEBI to seek response from Infosys on whistleblower letter

The hefty payout to former CFO Rajiv Bansal and the acquisition of Panaya were among the issues raised by the whistleblower.

Post Your Comments

Share Cancel

Moneycontrol Bureau
The country’s market regulator will seek a response from Infosys on several issues raised by a whistleblower in the company in a recent letter, according to a report in The Economic Times.

The report said that the Securities and Exchange Board of India is currently examining the letter, which criticised Chief Executive Officer Vishal Sikka and the company’s board of directors over their handling of the severance payout to former chief financial officer Rajiv Bansal and the acquisition of Panaya, for which Infosys paid six times the company's revenue. 

A senior SEBI official was quoted as saying that the regulator would examine the response and see if there was any violation of securities laws.

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 last month and led to friction between the two parties.

The letter marked to the SEBI Chairman claims any contract modification to Bansal’s contract had to be cleared by Infosys’’ audit committee. However, Sikka went ahead with hefty payout with formal board approval. In addition, the letter also alleges that Bansal got 30 months’ salary though his contract stipulated a payout of only three months. 

The letter said SEBI rules require transactions involving key management personnel to be disclosed as soon as they are entered into and that the board’s corporate governance report, given out on a quarterly basis, should have disclosed details of this transaction.

An Infosys spokesperson was quoted as saying that it would respond as per due proces if it receives any query from the regulator.

Buy, Hold, Sell ? Hear it first on M3
SEBI to seek response from Infosys on whistleblower letter

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login