On October 22, shares of Infosys has plummeted around 17 percent, wipes Rs. 53451 crores from its market valuation, after a whistleblower complaint that alleged that two top executives of the IT service firms were indulged in illegal practices to increase profits and short-term revenue.

The scrip marked 16.21 percent to close on the BSE at Rs. 643.30. During the day, it falls 16.86 percent to Rs. 638.30, the high since April 2013.

On the NSE (National Stock Exchange), it plunged 16.65 percent to close at Rs. 640.

The sharp fall in the scrip washed away Rs. 53450.92 crores from the market valuation of Infosys, which now remains at Rs. 276300.08 crores.

It was the worst-hit among the frontline IT service firms on both Nifty and Sensex.

According to the traded volume, 117.70 lakh shares of Infosys were traded on the BSE and more than 9 crore shares on the NSE.

As per the reports, a complaint lodged by a group that terms itself “Ethical Employees” had reported that Infosys’ CEO Salil Parekh and CFO Nilanjan Roy were involved in “unethical practices” to enhance profits and short-term revenue of the IT service firms.

On October 21, Infosys has said that the whistleblower complaint has been raised before the audit committee as the practice of the firm and that will be a pact with in accordance with the whistleblower policy of the company.   

Infosys Chairman Nandan Nilekani has said in a statement that the company’s audit committee will conduct an individual probe over whistleblower allegations.

The audit committee already started a consultation with independent internal auditors EY, and has engaged law firm Shardul Amarchand Mangaldas & Co. to carry out an independent probe, the Chairman mentioned in his statement to the stock exchanges.

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