Mumbai: Market regulator Sebi on Wednesday asked promoters of listed companies to disclose if they have pledged shares with lenders, while saying it has had no luck in determining the real size of the Satyam Computer fraud.
The regulator’s announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares — whose prices he had inflated by falsifying profits.
The details of disclosure, which should be made in two stages — event-based and periodical — will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave said after the board meeting here.
Although Raju disclosed that the fraud was to the tune of Rs7,800 crore, a Sebi team that landed in Hyderabad on 8 January has not been able to access him to verify his claim.
Raju, his brother Rama Raju and Satyam’s former CFO Vadlamani Srinivas were arrested on 9 January and sent to police custody on 18 January.
The police are seeking extension of custody and their plea would be decided on Thursday by a Hyderabad court, which would also determine if the Sebi team can interrogate Raju.
Bhave said the board meeting also reviewed the progress made so far in the investigations in the matter of Satyam.
The regulator is yet to launch any formal investigation into the alleged irregularities in Raju family-owned Maytas Infra, he said.
“We haven’t yet formally ordered any investigation on Maytas Infra,” Bhave said.
However, it has quizzed the IT company’s auditors and internal finance department staffers and reviewed details of Satyam’s bank deposits, Sebi Chairman C B Bhave said.
A Sebi team landed in Hyderabad on 8 January, a day after Raju disclosed cooking the books of Satyam by falsifying profits and lying about bank deposits.
According to Raju’s disclosure, the fraud is to the tune of Rs7,800 crore. Raju, who had also pledged nearly all his shares in the company, has been arrested and is in police custody — making it difficult for the Sebi team to access him.