Too many agencies probing Satyam scam: BSE chairman
Too many agencies simultaneously probing the Satyam Computer Services scam might not be the best way to bring out the truth, Bombay Stock Exchange (BSE) chairman Jagdish Capoor said in Kolkata.kolkata Updated: Jan 23, 2009 10:55 IST
Too many agencies simultaneously probing the Satyam Computer Services scam might not be the best way to bring out the truth, Bombay Stock Exchange (BSE) chairman Jagdish Capoor said in Kolkata today.
"I am not sure whether all the agencies launching investigation at the same time is the best way to bring out the truth expeditiously. With so many agencies involved, they would, I believe, not be able to avoid stepping on each other's toes," Capoor said during an interactive session organised by the Indian Chamber of Commerce.
B. Ramalinga Raju, founder chairman of the fourth largest Indian IT firm, admitted to the fraud of more than Rs.70 billion (Rs.7,000 crore) Jan 7. While the Criminal Investigation Department (CID) of the Andhra Pradesh police has been investigating the matter, the market regulator Securities and Exchange Board of India (SEBI) is also probing it.
"As the accused is behind the bars, it would also hamper the flow of information from his side. If there is seizure of records by one or the other investigating agency, the outcome may further get delayed."
He said the government must have taken adequate steps by now to prevent undue delay in the investigation process.
"There is a need to revisit the regulations, so as to make company directors more responsible, and auditors accountable," he said.
Stressing on better corporate governance, Capoor said: "I am sure changes will be made in the rules that govern corporate behaviour to ensure that a fraud of this nature is not repeated."
Commenting on the global economic meltdown and its possible effects on India, he said the economy will revive in the medium- to long-term.
"It is very much possible for India to reclaim the high-growth trajectory," he said.