Satyam fiasco: SEBI to take action

Mumbai, Jan 7: Satyam Computer fiasco has created shock waves in the industry. Defining the financial fraudulence as an event of 'horrifying event', market regulator SEBI on Wednesday, Jan 7 said it would take all steps under the law for which it has started discussions with government and bourses.

"We are in touch with Ministry of Corporate Affairs... we are also in discussion with them as to what steps need to be taken from the perspective of power they have under the law and SEBI has under the law," SEBI Chairman C B Bhave said.

SEBI will also be forwarding the letter written by Ramalinga Raju explaining fraudulence to the Government.

Stating that this development would have serious implications on the market, Bhave said, "we are in touch with Ministry of Corporate Affairs for coordinated action".

Bhave, speaking about the letter written by Ramalinga Raju to SEBI and the Board, he said it was 'most surprising' that cash balance that was non-existent got certified. The case also raises the issue of 'authenticity of accounts' that have been audited.

"Our main effort is to see that whatever facts are available with any regulatory agency, those are put out and investors know the truth... I am sure we will have to learn few lessons from this as we get through the facts," he said.

"We are also in touch with stock exchanges to see what will be the appropriate action," he said.

Reacting to the company's listing in the New York Stock Exchange, Bhave said: "This is probably not the time when SEC would be available. My guess is that Satyam will have to make similar disclosures there as well. I am not entirely familiar with their law with regard to areas as to what actions they would be taking."

OneIndia News (With inputs from Agencies)