'The fraud at Satyam is an accident'

Q&A: C B Bhave

The Securities and Exchange Board of India Chairman C B Bhave today said at a press meet that Raju’s letter was not enough to put him in front of a magistrate and that the regulator will file a case against Satyam only after the investigation was complete. He also said that there was a need to assure investors that this was a one-off case.

On barring Price Waterhouse from the audit business
The investigations are going on. It is not right to blame one party or the other. We had nothing on hand apart from Raju’s letter 48 hours ago. Though yesterday was a holiday, a Sebi team visited Hyderabad to inspect the books of the company. Today the company’s chief financial officer spoke to the inspection team. The team has asked for Raju’s presence to question him. There will be a meeting with Raju tomorrow. We must wait for more evidence to come out.

On Sebi co-ordinating with US regulator Securities and Exchange Commission (SEC) to investigate the fraud
We have not sent any Sebi official to the US since the case falls in the Indian jurisdiction. But there will be co-ordinated action from both the regulators. The company has made a filing with the US SEC. We have a memorandum of understanding (MoU) with the SEC where we share information with each other.

On filing a case against Satyam
Action can be taken against the company under the Companies Act. Action can be taken under the Sebi Act or the Indian Penal Code (IPC). The police can take cognisance of the issue.

Failure of Clause 49 that stipulates the appointment of independent directors
The fraud at Satyam is an accident. After each accident, we must thoroughly investigate the cause.

image
Business Standard
177 22
Business Standard

'The fraud at Satyam is an accident'

Q&A: C B Bhave

BS Reporter  |  Mumbai 

C B Bhave

The Securities and Exchange Board of India Chairman C B Bhave today said at a press meet that Raju’s letter was not enough to put him in front of a magistrate and that the regulator will file a case against Satyam only after the investigation was complete. He also said that there was a need to assure investors that this was a one-off case.

On barring Price Waterhouse from the audit business
The investigations are going on. It is not right to blame one party or the other. We had nothing on hand apart from Raju’s letter 48 hours ago. Though yesterday was a holiday, a Sebi team visited Hyderabad to inspect the books of the company. Today the company’s chief financial officer spoke to the inspection team. The team has asked for Raju’s presence to question him. There will be a meeting with Raju tomorrow. We must wait for more evidence to come out.

On Sebi co-ordinating with US regulator Securities and Exchange Commission (SEC) to investigate the fraud
We have not sent any Sebi official to the US since the case falls in the Indian jurisdiction. But there will be co-ordinated action from both the regulators. The company has made a filing with the US SEC. We have a memorandum of understanding (MoU) with the SEC where we share information with each other.

On filing a case against Satyam


Action can be taken against the company under the Companies Act. Action can be taken under the Sebi Act or the Indian Penal Code (IPC). The police can take cognisance of the issue.

Failure of Clause 49 that stipulates the appointment of independent directors
The fraud at Satyam is an accident. After each accident, we must thoroughly investigate the cause.

RECOMMENDED FOR YOU

'The fraud at Satyam is an accident'

Q&A: C B Bhave

The Securities and Exchange Board of India Chairman C B Bhave today said at a press meet that Raju’s letter was not enough to put him in front of a magistrate and that the regulator will file a

The Securities and Exchange Board of India Chairman C B Bhave today said at a press meet that Raju’s letter was not enough to put him in front of a magistrate and that the regulator will file a case against Satyam only after the investigation was complete. He also said that there was a need to assure investors that this was a one-off case.

On barring Price Waterhouse from the audit business
The investigations are going on. It is not right to blame one party or the other. We had nothing on hand apart from Raju’s letter 48 hours ago. Though yesterday was a holiday, a Sebi team visited Hyderabad to inspect the books of the company. Today the company’s chief financial officer spoke to the inspection team. The team has asked for Raju’s presence to question him. There will be a meeting with Raju tomorrow. We must wait for more evidence to come out.

On Sebi co-ordinating with US regulator Securities and Exchange Commission (SEC) to investigate the fraud
We have not sent any Sebi official to the US since the case falls in the Indian jurisdiction. But there will be co-ordinated action from both the regulators. The company has made a filing with the US SEC. We have a memorandum of understanding (MoU) with the SEC where we share information with each other.

On filing a case against Satyam
Action can be taken against the company under the Companies Act. Action can be taken under the Sebi Act or the Indian Penal Code (IPC). The police can take cognisance of the issue.

Failure of Clause 49 that stipulates the appointment of independent directors
The fraud at Satyam is an accident. After each accident, we must thoroughly investigate the cause.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard