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| Keep Satyam shareholders interest in mind: Govt to US SEC |
| Press Trust of India / New Delhi Jan 22, 2010, 13:59 IST |
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India wants the US market regulator to keep the interest of scam-hit Satyam Computer's investors in mind while taking an action in the multi-crore accounting fraud case.
"Any further action will further hurt the shareholders (of Satyam now Mahindra Satyam)...We hope and expect that the American authorities (the US Securities Exchange Commission) will appreciate this concern," Corporate Affairs Minister Salman Khurshid told reporters here.
"They do not have any final view yet. I am told that the US SEC is still cognizant in the matter. As far as we are concerned, we have communicated (to US SEC). The best that could be done has been done for the company," he said.
He added that accountability of Satyam has been established and its stakeholders have also been saved to a certain extent.
Securities and Exchange Board of India (Sebi) has already requested the US SEC urging not to penalise Satyam.
Satyam Computer Services, now Mahindra Satyam, can face punitive action in the US as the company's shares were listed and traded on American bourses. It is also contesting about a dozen class action suits in various US courts which could entail a heavy penalty on the company.
Satyam founder B Ramalinga Raju's disclosure of accounting fraud on January 7, 2009, is reported to have resulted in a loss of around Rs 14,000 crore to the shareholders.
In the US, the securities laws have empowered defrauded investors to get compensation from the errant parties.
The SEC can also enforce action and get damages/compensation for investors.
On January 7, the day when Raju disclosed the fraud to Indian market regulator Sebi, the New York Stock Exchange halted trading in Satyam after the stock plunged by over 90 per cent to $0.85 in pre-market trade.
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