India has requested authorities in the United States not to take any action against the scam-hit Satyam as it would amount to punishing shareholders of the IT company for a second time.
“SEBI has marshalled a request (to the U.S. Securities Exchange Commission) and we are monitoring them. On the political level such signals can be sent and we have already sent them,” Corporate Affairs Minister Salman Khurshid told PTI, when asked whether the government has taken up the issue of Satyam with the U.S. authorities.
Satyam Computer Services, now Mahindra Satyam, can face punitive action in the U.S. as the company’s shares were listed and traded on American bourses. It is also contesting about a dozen class action suits in U.S. courts which could entail a heavy penalty on the company.
Also, the company can face action by the U.S. Securities Exchange Commission.
“The case has been laid out quite well. And the case being that nobody should actually punish the shareholders a second time over...because any fine imposed on the company will inevitably hurt the shareholders”, Mr. Khurshid said.
The American administration would understand the issue, the Minister hoped. “But I am keeping my fingers crossed,” he said.
Satyam founder B. Ramalinga Raju’s disclosure of accounting fraud on January 7, 2008, is reported to have resulted in a loss of around Rs. 14,000 crore to the shareholders.