NEW DELHI: Prime Minister Manmohan Singh on Monday directed Cabinet Secretary K.M. Chandrasekhar to “coordinate the approach of the government” on the Satyam issue, following the revelation of a Rs. 7,100-crore accounting fraud by the IT major’s erstwhile chairman B. Ramalinga Raju.
Dr. Singh reviewed the “developments” with SEBI Chairman C.B. Bhave and senior Finance Ministry officials on the “further steps” that need to be taken. “The Prime Minister is closely following the developments,” PMO sources said.
Top industry leaders also met the Prime Minister and discussed the fallout that the corporate fraud would have on the global image of India Inc.
The former CII president, R. Seshasayee, CII’s chief mentor Tarun Das and Gujarat Ambuja chairman Suresh Neotia were among the industrialists who met Dr. Singh. In a quick move to salvage the image of Indian industry, the CII has set up a special task force on corporate governance headed by Naresh Chandra, former Cabinet Secretary and India’s Ambassador to the U.S.
The task force would look into the issues emerging out of the Satyam crisis and make its recommendations.
Corporate Affairs Minister Prem Chand Gupta said the government did not see any conflict of interest in HDFC chairman Deepak Parekh and former Nasscom president Kiran Karnik being on the Satyam board even as they are directors on the board of competitors of the troubled IT major.
PTI reports from New York:
The New York Stock Exchange will delist Satyam shares only if its average share price for 30 trading sessions goes below one dollar. On Monday, the share slipped below the one dollar level but regained the mark shortly thereafter.
