The PMO has directed Cabinet Secretary KM Chandrasekhar to co-ordinate actions of various government departments and regulators probing into the Satyam Computers Services Ltd case. The PMO is now virtually in full charge of the happenings at Satyam Computers to minimise adverse effects of a fraud at the company and to send a strong positive signal to investors? community.
The Securities and Exchange Board of India Chairman CB Bhave met Prime Minister Manmohan Singh on Monday and has apprised him of the latest developments in at the country?s fourth largest software developer. Singh has also discussed the Satyam case with the senior officials from the Ministry of Finance earlier in the day. Chandrasekhar would be handling the coordinated probe into the Satyam case by the Andhra Pradesh CID, SEBI, Serious Fraud Investigation Office (SFIO) and the Registrar of Companies.
?The PM is closely following the developments and has had detailed discussion with the Sebi chief and earlier with the finance ministry officials. The cabinet secretary has been directed to co-ordinate developments and actions in the Satyam?s case,? a senior official at the PMO said. The PM is also in touch with corporate affairs minister Prem Chand Gupta and the leadership of Andhra Pradesh, where Satyam is headquartered, it is understood.
The Centre is open to offering all possible help including financial assistance to revive Satyam. Stressing that the massive illegal gains made by a few individuals should not result in marring the careers of many innocent employees and erosion of the intellectual capital of the company, commerce and industry minister Kamal Nath said the government would consider all options, including any proposal to arrange for finances to revive it from the present situation. Most bankers are now unwilling to lend to Satyam as the correct books of accounts of the company were not available.
?Once the board comes up with proposals, we will consider it all. The government is looking at all the aspects and the sustainability and viability of Satyam,? said Nath, terming the case as an ?exceptional?. ?It is not the intention of the government to provide direct finance to the firm. But we can look at ensuring that funds required to carry on their normal, legitimate activities, can be accessed,? department of economic affairs secretary Ashok Chawla clarified to a TV channel.
The newly appointed three-member board of Satyam comprising HDFC chairman Deepak Parekh, former Nasscom president Kiran Karnik and the former Sebi member C Achutan held its first meeting on Monday. Satyam?s stock gained over 44% at the BSE on Monday as appointment of the new Board and government?s announcement to provide indirect liquidity support to the company lifted the share price.
Sebi is also understood to have discussed with the PM its intent to study the audit reports of all the Sensex companies. On Friday, Sebi has accepted the suggestion of its Committee on Disclosures and Accounting Standards to review audit reports relating to the last quarterly results and the last audited annual financial results of companies constituting the NSE-Nifty 50 and the BSE Sensex.
?For this purpose, a panel of auditors would be prepared by SEBI. This exercise would be taken up following the publication of third quarter results and is expected to be completed by end of February 2009,? Sebi had said. The markets regulator would also review on random basis reports of companies outside the list of Nifty 50 and Sensex would also be covered in the exercise.