Infosys down as investors fret over U.S. scrutiny
Reuters Market Eye - Shares in Infosys(INFY.NS), India's No. 2 software services company, fell over 3 percent on news that the company is under scrutiny from U.S. authorities for likely errors in employer eligibility documents of its staff.
"We believe that if the DHS concludes that there has been a systematic policy of misuse/violation of visas, there could be penalties or other strictures that could be imposed," Nomura said in a note, referring to the U.S. Department of Homeland Security.
(To read Infosys staff documents under U.S. scrutiny, click here)
The new development will add to concerns as the company will go on trial in August for alleged visa misuse and the current development may strengthen the case, Nomura said.
It also comes on the back of disappointing earnings on April 13, where the company disappointed investors with a weaker-than-expected revenue growth outlook for the current fiscal year.
Infosys, in a statement, said that any government action could materially and adversely affect its business and results of operations.
"We believe this is a negative development," Nomura added.
(Reporting by Manoj Dharra; Editing by Subhadip Sircar)
- Tweet this
- Share this
- Digg this
- Malaysian plane still missing; questions over false IDs
- Malaysian jet's disappearance among rarest of aviation disasters
- Malaysian jetliner may have turned back before vanishing
- Malaysia Airlines says "fearing the worst" for missing jet
- Malaysia probing two more passengers on missing flight - source
PLANE GOES MISSING
A Malaysia Airlines flight carrying 227 passengers and 12 crew was presumed to have crashed off the Vietnamese coast on Saturday, and European officials said two people on board were using false identities. Full Article