Probe into SKS still on: Bhave

Market regulator the Securities and Exchange Board of India (Sebi) today said it is still investigating the issue of SKS Microfinance sacking its CEO Suresh Gurumani-- which raised the hackles of investors --shortly after a successful Rs 1,600-crore public offer.

"The investigation is still on...," Sebi Chief C B Bhave told reporters here.

After raising Rs 1,600 crore through an initial public offer (IPO) in August, the Hyderabad-based company on October 4 terminated the services of Gurumani four years ahead of the expiry of contract and named M R Rao as his successor. Gurumani had a five-year contract starting from April 1, 2009.

A few days later on October 14 the regulator in a communique to the company had asked whether the termination of Gurumani was planned when SKS had filed the draft prospectus in March for the IPO.

The company replied to the Sebi questionnaire the following day, but declined to make public the details.

Gurumani was earlier director at consumer banking at Barclays. After his sacking SKS founder Vikram Akula has become the executive chairman.

The matter reached the Andhra Pradesh High Court later which allowed him to continue as a director on board till final orders.