Press Trust of India / Kolkata Dec 15, 2009, 14:51 IST
India has urged the US Securities Exchange Commission (SEC) not to impose fine on Satyam, now Mahindra Satyam, in view of irregularities as the company was also listed there.
"We have urged the SEC that there should be no penalties imposed on Satyam as it will ultimately fall on the shareholders," Minister of State for Corporate Affairs Salman Khurshid told reporters here.
Satyam has been put back on its feet. Imposition of penalty would deter the process of rehabilitation that has already begun in a very creative manner, he said.
Khurshid said that the Centre had reached the SEC through SEBI which has an agreement with the US regulator.
"But, we do not know whether SEBI has got the information on the penalty. We are in touch with the US government, but the SEC is an autonomous body," he said.
He said that in the US, there was a system of imposing penalties on defaulting companies.
About the Competitive Commission, Khurshid said that it had already started hearing of the cases.
He said that the Competitive Appellate Tribunal had been given the work of MRTPC. So far, 2000 cases had been referred to the commission and 40 disposed.
He said that Justice Arijit Pasayat was heading the tribunal.
As per the sunset clause, MRTPC would continue to exist for two more years.
Regarding the Company Law Board, he said that the full board would be formed soon.
The government of india is legally bound to make good loss to foreign investors if they lost investing in indian company because of fraud. It is pity that same gurantee is not given to retail investors of india. I wish sec imposes heavy penalty on satyam company and let govt honour their commitment then only indian promotors will stop taking retail investor for a ride. One year has passed and no punishment in usa Madoff sent to jail in 3 months. This is the reason for ard 2% participation by retail investor in india as compared to more than 50% in USA, but who cares? Pink paper,mutual fund industry, stock brokers, com[anies who have collected crores, no sir nobody cares so stay away and put your money in shrt term bank deposits which everybody is doing any sensex has doubled, but no sign of arrival of retail investors. Are FII wrong or roght this time only time will tell.
Kishore ghiya -0925217857 e mail pcbank@sify
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