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Infosys asks German SEs to stop `unauthorised' ADS trading

Our Bureau

Bangalore , Oct. 28

SOFTWARE major Infosys Technologies Ltd has asked several German stock exchanges to delist and stop the illegal trading of its American Depository Shares (ADS) immediately.

The company on Thursday said it had recently learnt of the unauthorised listing of its ADS in Germany on the Berlin-Bremen, Düsseldorf, Munich, Frankfurt, Stuttgart and XETRA exchanges. Infosys ADSs were being traded under the ticker symbols IOY, BER, IOY, DUS, IOY, MUN, IOY, FSE, IOY, STU and IOY.ETR on these exchanges, respectively, the company said in a statement. These listing occurred without its knowledge or permission, it added.

The company has requested that the exchanges involved and the stock specialist responsible for the unauthorised listing delist Infosys' ADS immediately and halt their trading from these exchanges. It also said that it was aware that unauthorised listing and trading on several German exchanges recently commenced in numerous Nasdaq-listed stocks.

Typically, listing of equities on stock exchanges requires the company's consent. However, in Germany, the stock exchanges allow intermediaries to list without the company's permission, said Mr V. Balakrishnan, Company Secretary and Senior Vice-President (Finance), Infosys.

The intermediaries, mainly brokers, seeing interest in the company could have done this, he said. "We are trying to caution the investors through this announcement," Mr Balakrishnan told Business Line.

However, the company was not aware of the frequency and the volumes of the ADS traded at German exchanges, he added.

Being listed in the US, the Securities and Exchange Commission does not view this unauthorised listing favourably, he said, adding, "The SEC generally makes the company delist from these exchanges."

This development comes in the wake of the company raising its earnings forecast for the entire fiscal after delivering a splendid second-quarter performance, beating market expectations by a significant margin. The Infosys stock has gained close to 40 per cent on the domestic exchanges since the company announced its first-quarter results in July this year. The Infy ADR usually trades at a 30-40 per cent premium to the local share prices. Infosys shares closed at Rs 1,948.95 on the BSE on Thursday, up 4.27 per cent from the previous close.

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