IT major Infosys said it received no evidence to support the allegations in a whistleblower letter from last month, sending shares up as much as 6.5% in the morning trade.
A letter that was claimed to have been written by employees of the company last month, said chief executive Salil Parekh instigated them and others to bypass approvals for large deals, fearing a negative impact on shares from reduced profit.
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“There is no supporting evidence that has been received by the company along with these anonymous complaints to substantiate the allegations,” Infosys said in a letter to NSE dated November 2.
The charge was 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).
The complaints were still under investigation and the company was not in a position to determine “concreteness, credibility and materiality of complaints”, the IT services company said in its letter to the NSE.
The letter was in reply to the NSE’s request to the company to explain why it had not disclosed the receipt of the letter.
Infosys said since the allegations were not deemed “material” under the Indian regulation, the company was not obligated to disclose them.