Who made a huge position in derivatives before the whistleblower complaint at the IT giant Infosys Company? Sebi's Investigation

Mumbai, Ta. 23 October 2019, Wednesday

Securities and Exchange Board of India (Sebi) has launched a probe to find out who made the huge derivatives position in the stock of Infosys before the whistleblower complaint against company management was announced. Infosys' November series saw the creation of massive derivatives positions and Put's big position.

After the whistleblower complaint was announced in Infosys, the stock recovered on Wednesday, falling by a four percent gap. Whistleblower Infosys Management and US The complaint to the Securities and Exchange Commission (SEC) was made public on October 1. Infosys's American Depository Receipts (ADR) broke 5 percent on Monday after the complaint was announced and Infosys shares fell 5 percent in the Indian stock market on Tuesday.

According to the complaint filed by the whistleblower, the company's chief executive officer Salil Parekh and chief financial officer Nilanjan Roy have adopted unlawful accounting practices to increase profits.

Sources in the SEBI inquiry into the matter said that the SEBI itself has automatically taken into account the fact that there was no complaint to Sebi. The audit committee of Infosys has also investigated the complaint for its merit and discussed it on October 1. The Semi Audit Committee would like to know what the committee found for any action.

On Wednesday, the BSE said Infosys had failed to disclose the whistleblower's complaint to the stock exchanges as per the listing norms. The Listing Obligation and Disclosure Standards require that all material information be disclosed and that the whistleblower allegations are not material until proven otherwise.

Companies receive a number of whistleblower complaints every year. Companies announce their numbers and the types of whistleblower complaints in their annual reports without their content. Both Infosys CEO and CFO are reported to have been questioned by the Infosys board on October 1 in the allegations.