Satyam gets NYSE warning for late filing of accounts

Satyam gets NYSE warning for late filing of accounts


The New York Stock Exchange has warned Satyam Computer (now rebranded as Mahindra Satyam) that it might initiate delisting procedures against the company for late filing of financial statements.

“NYSE Regulation will closely monitor the status of the company’s late filing and related public disclosure for up to an initial six-month period from the report’s original due date."

NYSE Regulation could commence delisting proceedings at any time during the period that is available to complete the filing, if circumstances warrant,“ Mahindra Satyam said in a disclosure to the US Securities and Exchange Commission.

The US Regulator added that the company would be included in the late filers list of the NYSE with effect from 22 October as it failed to submit its annual report by 15 October.

“The letter indicated that the NYSE Regulation, may, in its sole discretion, allow the company’s securities to trade for up to an additional six months depending on specific circumstances," the filing added.

Meanwhile, India’s Company Law Board (CLB) in its order dated 15 and 16 October had extended “to 30 June, 2010 the time for filing of document required to be filed by the company with the various statutory authorities in India, including the financial statements for financial years 2008 and 2009 and the quarterly financial reports as required under the company’s listing agreements with the stock exchanges."

In January, Satyam founder B Ramalinga Raju had confessed to cooking up the company’s account books for several years, leading to a multi-crore scam.

Following the announcement on 7 January, the New York Stock Exchange halted trading in Satyam Computer at its bourses in the US as well as in Amsterdam in Europe, after in pre-market trade in the US, Satyam stock plunged by over 90 per cent to $0.85.

In April the NYSE Euronext approved the delisting of the company’s American Depository Shares (ADS) from the exchange.

However, the company’s shares continue to remain listed on the Bombay Stock Exchange and the National Stock Exchange and its ADSs continue to be traded on the NYSE.