Sebi team initiates Satyam probe in Hyderabad

Sebi team initiates Satyam probe in Hyderabad
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First Published: Thu, Jan 08 2009. 05 39 PM IST
Updated: Thu, Jan 08 2009. 05 39 PM IST
Mumbai: A special team of the Securities and Exchange Board of India, headed by its Southern Region General Manager A Sunil Kumar, today began the investigation into the Satyam fraud at the IT firm’s headquarters in Hyderabad.
The market regulator had ordered a probe into the financial fraud after the company’s Chairman, B Ramalinga Raju, disclosed that Satyam’s balance sheet was totally manipulated with inflated numbers.
“They have initiated the investigation process. The team will look into the details of the issue,” a senior Sebi official told PTI here.
The Sebi team is also believed to have visited the Hyderabad office of PriceWaterhouse-Coopers (PwC), the auditor of India’s fourth largest outsourcing firm, sources said.
When contacted, a PwC spokesperson denied this saying “no Sebi member has visited any of our offices so far.”
Meanwhile, some of the key clients of Satyam Computers are understood to be meeting in Hyderabad today to assess the current status of the troubled IT-major and to review their projects with the company.
Shares of Satyam had slumped to a 10-year low yesterday following the developments in the company.
Sebi Chairman C B Bhave had yesterday termed the developments at India’s fourth largest IT company as an event of “horrifying magnitude” and said the regulator would take all steps in the matter.
The investigation, SEBI said, will ascertain whether any provision of the Act or regulation has been violated.
“We are in touch with the Ministry of Corporate Affairs...we are also in discussion with them as to what steps need to be taken from the perspective of power they have under the law and SEBI has under the law,” Bhave said.
Announcing the probe, the market watchdog had said that the investigation will go into the affairs relating to buying, selling or dealing in the shares of Satyam Computer Services and submit the report to the board at the earliest.
The investigating authority has been armed with powers under various Sections of Sebi Act to carry out the probe, Sebi said.
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First Published: Thu, Jan 08 2009. 05 39 PM IST