Government asked SEC to go soft on Satyam, Khurshid
23 Jan 2010
India's minister for corporate affairs Salman Khurshid said the government has informed the US authorities that they should keep in mind the interest of the investors of Satyam (now Mahindra Satyam) before imposing any curbs on the company.
"They do not have any final view yet. I am told that the US SEC is still cognizant in the matter. As far as we are concerned, we have communicated (to US SEC). The best that could be done has been done for the company," he said.
''Any more action will further hurt the shareholders. We hope and expect that the American authorities will appreciate this concern,'' said the minister.
The regulatory action being considered follows then Satyam chairman B Ramalinga Raju's confession on 7 January 2009 that the company has misrepresented funds to the tune of Rs7,000 crore (See: Satyam's Raju admits to fraud and resigns).
The company is contesting about a dozen class action suits in various US courts, which could entail a heavy penalty on the company.
Mahindra Satyam, which was taken over by Tech Mahindra, can face punitive action in the US as the company's American Depository Shares (ADS) were listed and traded on American bourses.
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