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Govt hopeful US won't penalise Satyam for previous frauds

IANS
Jul 13, 2010 at 05:11pm IST

Kolkata: Corporate Affairs Minister Salman Khurshid said in Kolkata on Tuesday the government is hopeful that the capital market regulator in the United States would not impose any penalty on Satyam Computer Services Ltd.

The market regulator in India, Securities Exchange Board of India (SEBI) had earlier requested the Securities Exchange Commission (SEC), the US regulator, to waive the penalty on Mahindra Satyam for frauds committed by its previous management.

"I don't have any formal information. My informal information is there is no cause of worry," Khurshid told reporters on the sidelines of a seminar on financial inclusion by FICCI.

SEBI had earlier requested the SEC to waive the penalty on Mahindra Satyam for frauds committed by its previous management.

The SEC has been investigating Satyam's operations in the US as it is listed in the New York Stock Exchange.

Regarding the Satyam case, he said: "Prosecutions are going on. All the chargesheets have been filed, all the investigations are over. There may be some that the Enforcement Directorate is carrying on, trying to find whether there is any money going across the border. But that do not prevent the prosecution from going forward."

The Ministry has provided some more time to Mahindra Satyam to present the balance sheets of previous years.

The multi-billion Satyam scam hit headlines in 2009. Subsequently Tech Mahindra that provides telecom software services took over Satyam following which the name of the company was changed to Mahindra Satyam.

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