5 Feb 2009
HYDERABAD: Weeks after the Satyam scam broke and over a dozen class action suits were filed in the US, a high-level team of the Securities and Exchange Commission (SEC)—the American equivalent of the Securities and Exchange Board of India (Sebi)—has landed in India.
According to sources, the SEC team, which met some top Sebi officials in Mumbai, will meet Satyam’s new board members in Hyderabad on Thursday to learn more about India’s biggest corporate rip-off.
The SEC’s jurisdiction is largely limited to the company duping investors of the American Depository Rights (ADR) which are listed on the New York Stock Exchange. The SEC may want to apprise itself of the details of the scam as the class action suits have alleged that their investments were defrauded by Satyam CEO Ramalinga Raju and that he had confessed to the same.
Sources said that the SEC, as the watchdog of US investors, might want to gather as many details of the scam as possible in order to ensure that it is not caught unawares by similar scams by international companies listed in the US in future.
However, one analyst said, “One wonders what or how much the SEC team can learn about the scam as the five-member Sebi team only got permission from the supreme court on Tuesday to question prime accused B Ramalinga Raju. What can Sebi tell SEC after only a few hours of questioning?’’
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