Clean chit for Infosys from US SEC on whistleblower case, stocks gain 16%

Infosys, the country’s second-largest software services exporter, has been fully cleared by the US Securities and Exchange Commission (SEC) on the so-called ‘whistle-blower’ charge of last year that had alleged wrongdoing by the top management.

“The company received a notification that the SEC has concluded its investigation and the company does not anticipate any further action by the SEC on this matter,” it told the stock exchanges. “The firm has also responded to all the inqires received from the Indian regulatory authorities and will continue to cooperate (on) any additional requests.”

In late October 2019, a ‘whistle-blower’ letter went public. It alleged the company’s chief executive and finance head were guilty of inflating the growth numbers through accounting irregularities. Infosys’ audit committee had the charge investigated and concluded this January that the allegations had no factual basis.