SEBI to appeal against Hyd court order on Raju interrogation
Market regulator SEBI said it would appeal against a magistrate court's order denying permission to it to interrogate Ramalinga Raju and his brother Rama Raju in connection with the Rs 7,800 crore fraud in the company.business Updated: Jan 28, 2009 16:39 IST
Market regulator SEBI on Wednesday said it would appeal against a magistrate court's order denying permission to it to interrogate Satyam founder Ramalinga Raju and his brother Rama Raju in connection with the Rs 7,800 crore fraud in the company.
"We are going for appeal," SEBI Chairman C B Bhave told reporters in New Delhi.
The 6th additional chief metropolitan magistrate in Hyderabad had rejected SEBI's application seeking a day's custody of the Raju brothers.
SEBI is probing the case to find if there was any insider trading in the company, whose books Raju admitted to cooking over several years.
The Raju brothers, along with Satyam's former CFO Vadlamani Srinivas, are in judicial custody awaiting charges to be filed against them.
Raju had on January 7 disclosed that he had falsified profits and created fictitious assets in the company, which is now being administered by a government-appointed board.
The new board on Tuesday said it had received many offers for a takeover, but ruled out selling the company in parts.
Asked whether engineering major L&T, which has increased its stake in Satyam to over 12 per cent through open market transactions, has approached the regulator seeking waiver of open offer conditions, Bhave said: "I cannot comment."
L&T is reportedly seeking waiver in a clause that requires it to make an open offer to buy 20 per cent shares taking the average price of the last six months.
First Published: Jan 28, 2009 16:37 IST