SEBI Team To Look Into Insider Trading In Satyam
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Loading ...Though Ramalinga Raju has mentioned in his confession letter, that Satyam’s inflated profit was just to build investor confidence and no profits were made by insider trading by any of Satyam’s promoters, SEBI is still probing into the matter of insider trading.
Market regulator SEBI’s special team, set up to probe into the financial irregularities in Satyam Computers, has set its focus among other things on alleged ‘insider trading’ carried out by top executives in the IT firm in the recent past, sources said today.
“Our major concerns in this case include any insider trading activities that might have occurred in Satyam shares and all aspects of fraud committed in the company’s book,” Sebi sources told reporters here today.
The market regulator formed an investigation team soon after Ramalinga Raju confessed that he cooked the company’s balance sheet for seven years with inflated profit numbers and understated liabilities.
The three-member team, led by senior SEBI official A Sunilkumar, is understood to be progressing with its probe at Satyam headquarters in Hyderabad.
The team is primarily inspecting the irregularities committed by Rajus and other manipulators in stock market.
However, the probe team has not been given any time-frame to submit its findings, sources said.
The Government had scrapped the erstwhile board of Satyam and appointed three new members–HDFC Chairman Deepak Parekh, former Sebi member C Achutan and IT expert Kiran Karnik– to rebuild the struggling computer-giant.
As the first step to resurrect the company, the board today appointed auditing firms, KPMG and Deloitte, to restate the financial statements of the scam-tainted company’s accounts.
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Why do we need SEBI? It is helpless in preventing crimes targetted at investors in the market. AFTER IT COMES TO KNOW OF A CRIME, IT STILL SITS ON ITS HAUNCHES TOTALLY PARALYSED, INSTEAD OF SAFEGUARDING THE INTEREST OF THE INVESTORS.Who is SEBI actually meant for? At the end of it,if investors have to fend for themselves in terms of own safety, then why have the facade of a regulator. Did it safeguard the interest of the investor by freezing trade in Satyam scrip after receiving Raju’s letter of resignation? Such a catastrophic letter and you still feel like putting it up in public domain without freezing trade in the scrip. All this after SEBI itself commented that it doubts the veracity of the contents of the letter as also the genuineness of the letter. If SEBI felt initially that the letter being unsigned may be a prank , then why did it allow the letter to become public. SEBI is harping about Insider Trading in Satyam…well some investigating team should look for such clues in the corridors of SEBI to begin with.