ICICI Gives Clean Chit To Infosys Over Whistleblowing Allegations; Share Price Up By 1.8%
Infosys has had a rough couple of weeks, and the company had some serious allegations, which also included racism, thrown at it. The shares of the company went down, and investigations were launched against one of the leading IT companies of India.
But not anymore, as things have now taken a strange turn: the company has been washed clean of all the accusations made against it. In addition to that, the share price of the company has gone up too!
Despite being accused of such serious allegations, how did Infosys get a free pass? Find out right here!
Infosys Accused Of Fraud By Whistleblowers: Story So Far
A group of employees from Infosys had written a letter to the US SEC and the Board of Infosys, accusing the senior level employees of serious frauds. The whistleblower stated in their letter that the CEO of Infosys, Salil Parekh voluntarily bypassed the reviews and approvals, especially for large deals.
The letter also accused Salil Parekh of racism, and calling the revered board members some grossly disrespectful names. His exact words, as per the letter, were, “Those two Madrasis (Sundaram and Prahalad) and Diva (Kiran) make silly points, you just nod and ignore them”.
This resulted in a major controversy, and to pour oil over the fire, the company’s shares diminished by 16%, and investors also lost Rs. 44,000 crores.
Soon enough, the US SEC started an investigation in the matter, and the Securities and Exchange Board of India (SEBI) also asked for information regarding the same, to which Infosys replied that their auditing committee was looking over the matter.
But Clean Chit By ICICI Security?
Mumbai based ICICI Securities have specified in a report that they could find no such events, and “no perceivable inconsistency” in the important data shared with them.
ICICI Securities said that Infosys had already specified that they found no discrepancy in the whole matter as Infosys has always clarified that deals such as Verizon and Stater should be looked at as ‘investments made to build relationships with strategic clients with an anticipation margins on these deals expected to remain dilutive to company average for long’.
Infosys Share Price Increases
Additionally, the share of Infosys saw a hike by 2.62%, as revealed by reports, which also said that shares of Infosys, along with other companies, such as Vodafone Idea, YES Bank, BHEL, Tata Motors, were among the most traded shares on the NSE.