Infosys falls 4 per cent amid fresh visa troubles

BANGALORE: Share of India's second largest software services exporter Infosys fell 3.9 % on reports that the company is under scrutiny by the US Department of Homeland Security (DHS) for likely errors in the employer eligibility documents of its staff working in the United States.

On Monday, Infosys shares ended at Rs 2,311.95, down by 94.30 points on the Bombay Stock Exchange.

Last week Infosys had informed the US Securities and Exchange Commission (SEC) that the DHS was reviewing its employer eligibility verifications on Form I-9.

The company said it was co-operating with the DHS. "We are constantly working in many areas to improve our policies and practices, to ensure that our internal controls are sound and to make sure that they are best in class," Infosys said in a statement.

Infosys, the second largest software services provider is already facing a probe in the US over alleged misuse of visas. According to an Infosys employee in the US, Jack Palmer, the company has been sending employees on B1 visas in lieu of H1B visas.

Stock of the Bangalore based firm has already taken a severe beating in the past ten days after it reported its annual and fourth quarter earnings on April 13. The company disappointed investors after missing its growth forecast in the fourth quarter and giving a weaker than expected growth outlook for the FY'13.