EY, Shardul Amarchand to conduct probe; CEO, CFO recuse themselves
Infosys co-founder and company Chairman Nandan Nilekani has once again emerged as the man of the moment even as the firm he leads grapples with another crisis-like situation and an erosion of more than Rs 53,000 crore in market cap following allegations of unethical practices.
As soon as the markets opened on Tuesday after a holiday, Nilekani swung into action by informing the exchanges that the company was conducting an investigation into the complaints of a whistle-blower. Sources in the know said he attended an audit committee meeting at the Infosys campus on Tuesday. D Sundaram, Punita Kumar-Sinha, and Roopa Kudva are members of the committee.
“The chairman is in control of the situation and is engaged with all stakeholders to assuage the concerns of investors,” said a person familiar with the development. Nilekani steps in as Infosys investors fume over whistleblower complaint.
The company is also learnt to be looking into the circumstances in which confidential financial information was recorded and stored as claimed in the whistle-blower’s letter. However, this hardly helped the situation with the company’s share prices plunging 16.21 per cent to settle at Rs 643.30 on the BSE. This is the sharpest intra-day fall in Infosys shares in more than six years. It erased the IT major’s market cap by Rs 53,131 crore and dragged it below Rs 3 trillion.
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