Infosys starts investigation into alleged 'unethical practices' by CEO Salil Parekh; shares tank 16%
Infosys shares plunged 16% on Tuesday, marking their worst intraday drop in over six years.
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One of the complaints largely deals with allegations relating to the CEO's international travel to the US and Mumbai, Infosys chairman Nandan Nilekani said
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The allegations come just two years after India's No. 2 software services firm endured a shake-up that saw its top boss Vishal Sikka leave the company
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The whistleblower group alleged that Parekh was bypassing reviews and approvals for large deals
Bengaluru: Infosys Ltd said on Tuesday it was investigating allegations of “unethical practices” by chief executive officer Salil Parekh after receiving whistleblower complaints last month, sending its shares into a tailspin.
One of the complaints "largely deals with allegations relating to the CEO's international travel to the US and Mumbai," Infosys chairman Nandan Nilekani said in a statement.
Parekh did not respond to Reuters’ request for comment.
Representational image. Reuters.
Infosys shares plunged 16% on Tuesday, marking their worst intraday drop in over six years.
The allegations come just two years after India’s No. 2 software services firm endured a shake up that saw its top boss Vishal Sikka leave the company.
The Economic Times had reported on Monday that an anonymous group sent letters to Infosys' board and the US Securities and Exchange Commission alleging that the company was taking "unethical" steps to boost short-term revenue and profit.
The group alleged that Parekh was bypassing reviews and approvals for large deals, the report added.
Reuters was not able to independently review the letters.
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