ACCOUNTING
| Satyam, SEC reach settlement over accounting issues Wed, 06 Apr 2011 13:23:00 +0530 |
| Shares of Satyam Computer Services, now Mahindra Satyam, jumped by over 9% in early trade on the BSE today after the company reached a settlement with the US Securities Exchange Commission, which concludes the SEC's investigation of accounting issues related to the firm. Following the settlement, the scrip of the IT services provider witnessed heavy buying interest and surged by 9.20% to an early high of Rs 77.10 on the Bombay Stock Exchange (BSE). A similar trend was seen at the company's counter on the National Stock Exchange as well, where the stock shot up by 9.27% to an early peak of Rs 77.15. In a filing to the BSE, Satyam Computer said, "It has reached a settlement with the US Securities Exchange Commission, which concludes the SEC's investigation of accounting issues to the company." The settlement relates to an accounting fraud perpetrated by the company's former management from at least 2003 through September, 2008. Commenting on the move, Mahindra Satyam Chairman Vineet Nayyar said, "We concluded that it is in the best interests of Mahindra Satyam and its shareholders to resolve this matter and put it behind us on the basis announced today. The new management of of the company are committed to the highest standards and we will never betray the trust of our investors." Under the terms of settlement, the company consented to the entry of a judgement requiring it to pay a civil penalty of $10 million, comply with US federal securities laws, hire an independent consultant and comply with the certain undertakings, the filing added. Yesterday, the US regulators fined the software firm and its auditors PriceWaterhouse India up to $17.5 million for the accounts fraud that went undetected for several years. Meanwhile, the BSE broader index Sensex was trading at 19,598.71, down by 88.11 points, at 1135 hrs. |
Online Poll