Govt hopeful of SEC leniency on Satyam

The Union government on Monday indicated it was hopeful of a favourable reply from the US Securities and Exchange Commission (SEC) to a request for being lenient on scam-hit Satyam Computers, thereby allowing it to remain on the rehabilitation track.

“We are expecting to get a fair judgment (from the SEC),” ministry of corporate affairs’ Secretary, R Bandyopadhyay, said here at an interactive session organised by the Bengal Chamber of Commerce and Industry and the Institute of Company Secretaries of India.

Subsequent to the scam coming to light, the SEC launched an investigation, as Satyam was listed on American bourses. This could culminate in the imposition of a heavy fine on the company.

Bandyopadhyay said the government had stated its arguments to the US administration to protect the interests of the 50,000-odd employees and shareholders of Satyam Computers, now known as Mahindra Satyam.

While he did not divulge the expected date of the SEC verdict, Bandyopadhyay said there had been delays in the decision-making processes of the US regulator, as there had been a reshuffle within the SEC subsequent to the change in the presidency of the country.

As for domestic investigations, only the report of the Enforcement Directorate (ED) was still awaited, Bandyopadhyay said. He added the ED’s report would take some more time due to the complexity of the investigations.