Satyam may draw SEC scrutiny

The US Securities and Exchange Commission is investigating whether Satyam Computer Services misled investors in an alleged $1 billion accounting fraud, two people familiar with the matter said.

Officials from SEC have discussed the case with their counterparts in India and plan to coordinate inquiries involving the nation’s fourth-biggest software exporter, one of the people said. The people declined to be identified because the SEC’s role in the case isn’t public.

Satyam Chairman Ramalinga Raju said on January 7 that he had fabricated $1 billion of cash and assets, sparking an 85 per cent plunge in the stock. American depository receipts for the Hyderabad-based company trade in New York, requiring it to file financial statements with US regulators and submit to their jurisdiction.