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Wednesday, Feb 04, 2009
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NEW DELHI: The Securities and Exchange Board of India in its Special Leave Petition before the Supreme Court in the Satyam case, said that it approached the Andhra Pradesh High Court for a direction to permit it to interrogate the Raju brothers, who were in judicial custody. But the High Court refused permission and posted the matter for February 9. In view of the urgency, the SEBI was constrained to move the apex court.
The fraud in Satyam was the worst in the history of the country. In less than one month, the market capitalisation fell from Rs.15,000 crore to Rs. 2,000 crore.
Domestic investors of the company were devastated and foreign investors’ confidence was shaken, the SLP said.
The market regulator pointed out that it was a specialised agency, which had the competence and expertise to investigate matters pertaining to frauds in transactions in securities.
The finding of the trial court that the SEBI was not an investigative agency and that there was no provision in law under which it could interrogate the two respondents was contrary to law. The High Court ought to have interfered with the trial court’s findings. But it had not.
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