Moneycontrol Be a Pro
Get App
Last Updated : Oct 21, 2019 11:00 PM IST | Source: Reuters

US listed shares of Infosys plunge 16% after whistleblower complaints

The complaints follow a strong quarterly show by Infosys, which raised the lower end of its annual revenue forecast on upbeat demand for its digital services from Western clients.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Infosys shares listed in the US market fell close to 16 percent in premarket trading on October 21 after the company said it had received whistleblower complaints alleging "unethical practices" by the company's executives.

Following reports that the Infosys board and the US Securities and Exchange Commission had been sent letters by an anonymous group alleging "unethical" steps by the company to boost short-term revenue and profit, Infosys issued an official statement.

The group had reportedly alleged that Chief Executive Officer Salil Parekh was bypassing reviews and approvals for large deals, as per an Economic Times report.

Close

"In large contracts like Verizon, Intel, JVs in Japan, ABN AMRO acquisition, revenue recognition matters are forced, which are not as per accounting standards," the report said, citing cited the letters.

Reuters was not able to independently review the letters.

The complaints follow a strong quarterly show by Infosys, which raised the lower end of its annual revenue forecast on upbeat demand for its digital services from Western clients.

"(The complaints) have been placed before the audit committee as per the company's practice and will be dealt with in accordance with the company's whistleblower policy," Infosys said in a filing to Indian stock exchanges.

ADRs of Infosys were down 15.7% at $8.91 in premarket trading on the New York Stock Exchange. Indian markets were closed on Monday for a holiday.

 

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Oct 21, 2019 07:38 pm
Loading...
Sections
Follow us on
Available On