SEBI To Order Forensic Probe Into Infosys Allegations
[ By Bobby Anthony ]The Securities & Exchange Board of India (SEBI) is in the process of appointing a forensic auditor to probe into Infosys Ltd’s books after whistleblowers’ allegations that its top executives were involved in financial irregularities.The SEBI decision has come after an Infosys’s internal audit committee concluded on January 10 that charges made by whistleblowers...
ToRead the Full Story, Subscribe to
Access the exclusive LEGAL ERAStories,Editorial and Expert Opinion
The Securities & Exchange Board of India (SEBI) is in the process of appointing a forensic auditor to probe into Infosys Ltd’s books after whistleblowers’ allegations that its top executives were involved in financial irregularities.
The SEBI decision has come after an Infosys’s internal audit committee concluded on January 10 that charges made by whistleblowers were substantially without merit.
It may be recalled that anonymous whistleblowers had written to the company’s board, alleging that Chief Executive Officer Salil Parekh and Chief Financial Officer had indulged in “unethical practices" to boost revenue and profits.
The whistleblower complaint, which was also sent to the US Securities and Exchange Commission on 30 September, became public on 21 October 21, 2019, after which the SEBI took suo motu cognizance of the issue.
Incidentally, the SEBI is also investigating a huge build-up of derivatives positions in the Infosys stock before allegations of accounting malpractices were made public.
Meanwhile, the National Financial Reporting Authority (NFRA), which comes under the Ministry of Corporate Affairs, has also begun looking into the allegations.
