Infosys Limited has issued a regulatory clarification following significant volatility in its American Depositary Receipt (ADR) trading on the New York Stock Exchange on December 19, 2025. The IT services major addressed concerns after the price movements triggered multiple trading halts on the US exchange.

Trading Volatility Details

The company observed notable volatility in its ADR price on NYSE, which resulted in two Volatility Trading Pauses being activated under the Limit Up-Limit Down (LULD) mechanism. These automatic trading halts are designed to provide a cooling-off period during periods of extreme price volatility.

Company's Official Response

In its communication to stock exchanges including BSE Limited, National Stock Exchange of India Limited, and New York Stock Exchange, Infosys clarified that there are no material events requiring disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company emphasized that this clarification was issued purely in the interest of transparency and to prevent any unwarranted speculation in the market.

The communication was signed by A.G.S. Manikantha, Company Secretary (Membership no: ACS21918), and addressed to all relevant stock exchanges where the company's securities are listed.

Regulatory Compliance

Infosys reaffirmed its commitment to maintaining transparency and adhering to regulatory requirements. The company stated that it will continue to comply with its obligations under Regulation 30 of the SEBI Regulations, which governs the disclosure of material events and information.

Key aspects of the regulatory filing include:

• Confirmation of no undisclosed material events
• Commitment to continued regulatory compliance
• Proactive communication to prevent market speculation
• Adherence to transparency practices

Communication and Transparency

The clarification document has been made available on the company's official website at www.infosys.com , ensuring broader accessibility for stakeholders. This step demonstrates the company's commitment to maintaining open communication channels with investors and the broader market community.

The proactive approach taken by Infosys in addressing the ADR volatility reflects standard corporate governance practices, where companies provide timely clarifications to address unusual market movements and maintain investor confidence.

Infosys , one of India's leading IT services companies, is currently facing multiple regulatory challenges from tax authorities. The company has now received an additional penalty order from the Joint Commissioner of CGST, adding to its existing compliance issues with government authorities.

Latest CGST Penalty Order

Infosys has received a penalty communication from the Joint Commissioner of CGST on December 16, 2025. The penalty order details several alleged violations related to Input Tax Credit (ITC) practices spanning multiple financial years.

Nature of Alleged Violations

The penalty order cites multiple categories of alleged ITC-related contraventions during the specified period. The violations include disallowance of blocked ITC, excess ITC claims, wrong classification under tax heads, and invoices not reflected in Form 2A.

Previous Regulatory Actions

This latest penalty adds to Infosys's existing regulatory challenges. The company had previously received a show-cause notice amounting to Rs 4.15 billion from the Directorate General of GST Intelligence (DGGI) for suspected ineligible ITC refund claims. Additionally, the company faced a separate penalty of Rs 113.59 million from the Assistant Commissioner of Central Tax for alleged non-realization of export proceeds.

Company's Position

Infosys has stated in its regulatory filing that the latest penalty order does not have any material impact on the company's financials, operations, or other activities. The company has disclosed this information under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance Landscape

These multiple penalty orders highlight the increasing scrutiny on tax compliance practices in the Indian IT sector. The penalties span across different aspects of GST compliance, from ITC claims to export-related obligations, indicating comprehensive regulatory oversight of the company's tax practices.