Infosys shares fall 16% as whistleblowers accuse of unethical practices

Shares of Infosys fell as much as 16% to Rs 645 apiece on the BSE after the revelation that a group describing itself as ‘whistle-blower staffers’ had accused the management of unethical practices.

Infosys reported its sharpest intra-day fall in more than six years. Earlier on April 12, 2013 it fell 22% in the intra-day trade. The company’s m-cap slipped below 3 trillion-mark as it lost Rs 52,000 crore today.

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The latest charge is from an anonymous group, calling itself ‘Ethical Employees’. Their letter, dated September 20, was addressed to the board of directors and to the US markets regulator, the Securities and Exchange Commission (SEC).

Infosys issued a statement that its audit committee was examining the allegations, in line with its policy on whistle-blowers.

The Audit Committee has now retained the law firm of Shardul Amarchand Mangaldas & Co to conduct an independent investigation.

At 09:41 am, the stock was trading over 13.50% lower at Rs 663.50 apiece on the BSE. In comparison, the benchmark S&P BSE Sensex was trading 58 points or 0.15% lower at 39,241.

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