Sebi orders an investigation

Written by Markets Bureau | Mumbai | Updated: Jan 9 2009, 05:21am hrs
Sebi has ordered an investigation into the falsification of accounts by Satyam Computer Services. The markets watchdog said that the letter written by Satyam chairman B Ramalinga Raju reveals that the statement of accounts of the company provided to the stock exchanges was false. In this context, Sebi has ordered an investigation into the affairs relating to buying, selling or dealing in the shares of (Satyam), it said in a statement issued on Wednesday.

The regulator said the investigation would also ascertain whether any provision of the Sebi Act, regulations or rules had been violated. As a first step in the investigation, Sebi has ordered an inspection of (Satyam) in accordance with the provisions of the Sebi Act, it said.

Sebi executive director PK Nagpal said that general manager Sunil Kumar A had been appointed the investigating authority and would submit his report to the Sebi board at the earliest. The investigating authority may seek the assistance of officers of the board and any other person, Nagpal added.

He said Sebi is satisfied that it is in the interests of investors to investigate Satyam to ascertain whether there had been any infringement of the laws and regulations of the markets regulator. It shall be obligatory upon the persons being investigated to extend cooperation and furnish such information and material as may be required by the investigating authority in accordance with the regulations, Nagpal added.