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 and MIT Technology Review Insights have released a comprehensive global report revealing that psychological safety plays a critical role in driving successful AI initiatives across enterprises. The study, titled "Creating Psychological Safety in the AI Era," demonstrates that 83% of business leaders believe psychological safety directly impacts the success of their AI programs, highlighting the human factors that often determine technology adoption outcomes.

Key Research Findings on AI Success Factors

The report presents compelling evidence about the relationship between workplace culture and AI implementation success:

Current State of Psychological Safety in Organizations

The research reveals significant gaps in organizational readiness for AI transformation. Only 39% of respondents describe their current psychological safety level as high, while 48% report moderate levels. This disparity suggests many enterprises are pursuing AI adoption on cultural foundations that may not be fully stable, potentially undermining their technology investments.

Critical Barriers to AI Adoption

Despite major investments in AI technology, workplace fear remains one of the biggest obstacles to successful implementation. The study identifies several key challenges:

• Fear of failure: Nearly one-quarter of respondents admit hesitating to lead or suggest AI projects due to potential criticism
• Unclear communication: Employees often lack clarity about AI's realistic capabilities and limitations
• Limited leadership openness: Insufficient modeling of openness to questions, dissent, and failure

Solutions for Building AI-Ready Culture

The report emphasizes that creating psychological safety requires more than good intentions or standard HR policies. Organizations need explicit strategies:

Expert Perspectives on AI Transformation

Laurel Ruma, Global Editorial Director at MIT Technology Review Insights, emphasized that "psychological safety is not a soft metric, it is a measurable driver of AI outcomes." She noted that leaders who communicate clearly about AI's impact and model openness create essential conditions for innovation.

Rafee Tarafdar, Chief Technology Officer at Infosys, observed that successful enterprise AI transformations occur in organizations fostering psychological safety. "When employees feel empowered to experiment without fear of failure, innovation thrives," he stated, highlighting how trust and openness enable teams to unlock AI's full potential.

Sushanth Tharappan, Executive Vice President-HR at Infosys, reinforced that enterprises must pair technical investment with cultural transformation for lasting AI impact. He noted how psychological safety accelerates adoption when employees have safe spaces to experiment and reimagine their roles.

Strategic Implications for Enterprise AI

The report underscores that AI transformation encompasses both technological and cultural journeys. Organizations seeking to scale AI initiatives successfully must prioritize building trust, transparency, and safe-to-fail cultures alongside their technology deployments. This dual approach enables enterprises to create the psychological safety necessary for employees to fully engage with AI initiatives and drive meaningful business outcomes.