Why investors are holding Infosys guilty until proven innocent

For Infosys Ltd, it is more a case of being guilty until proven innocent, rather than innocent until proven guilty. A whistleblower complaint against the company, alleging unethical practices to boost short-term revenue, has led to a massive sell-off in the company’s American depositary receipts (ADRs). On the New York Stock Exchange, Infosys ADRs fell 15% to $8.95 in early trading on Monday.

News reports say the whistleblower complaint was sent to the company’s board on 20 September. Still, the board has no adequate response yet for investors after a month has passed. All the company said in a statement to the stock exchanges is that the complaint has been placed before the audit committee and will be dealt with in accordance with its whistleblower policy.