Now Infosys comes under Sebi scanner

Now Infosys comes under Sebi scanner

Now Infosys comes under Sebi scanner

India'a second-largest software services exporter Infosys on Friday said that market regulator Sebi has sought some clarifications from it regarding its June 1 board meeting.

Infosys said, the Securities and Exchange Board of India (Sebi) “has sought certain clarifications from us relating to the Board meeting held on June 1 and we have provided the same”.

Infosys had appointed N R Narayana Murthy as executive chairman of the Board and Additional Director with effect from June 1, 2013.

Murthy had then said, “This calling was sudden, unexpected, and most unusual. But, then, Infosys is my middle child. Therefore, I have put aside my plans-in-progress and accepted this responsibility.”

The company, however, did not clarify on what grounds Sebi has sought clarifications and what details of the board meeting have been asked for.

“We will fully co-operate with Sebi and provide all necessary information in this matter,” Infosys said in an emailed statement on Friday.

According to reports, Sebi has sought clarification regarding the spike in its share price on May 31, a day before the board meeting where Murthy's appointment was announced.

Shares in Infosys on the Bombay Stock Exchange (BSE) had risen nearly 3 per cent and closed at Rs 2,407.60 apiece at the end of day's trade on May 31, 2013.

An email sent to Sebi by Deccan Herald did not get any response.

During his five-year term, Murthy would draw an annual  token compensation of Re 1 per year.

“S Gopalakrishnan would be re-designated executive vice-chairman effective June 1, 2013 and would primarily focus on key client relationships and broader industry issues,” the company had said on the appointment of Murthy.