India’s software outsourcing giant Infosys shares (Infosys) shares fell 16% on Tuesday. The largest intraday decline in more than six years, and dragged down the broader market. An anonymous whistleblower complained earlier that the company’s CEO, Salil Parekh, used unfair practices to exaggerate profits.
According to India’s Economic Times, an anonymous whistleblower sent a letter to the board of directors of the Infosys. The US Securities and Exchange Commission (SEC) last month, accusing Parek of adopting “unethical practices” in recent quarters to exaggerate “short-term Income and profit.”
The Infosys Board of Directors said on Tuesday that it had initiated an investigation after receiving the report and submitted the complaint received on October 10 to the company’s audit committee and submitted it to the non-executive members of the board on October 11. The Audit Committee has hired a law firm to conduct an independent investigation.