Kolkata, Dec 15 (IANS) India has appealed to the US Securities Exchange Commission (SEC) not to slap a penalty on the erstwhile Satyam Computer Services, which was in the dock after discovery of a multi-crore accounting fraud.
“Any penalties levied on Satyam will ultimately fall on shareholders. So, we have urged SEC not to impose any fine on it,” Minister of State for Corporate Affairs Salman Khurshid told reporters on the sidelines of a programme here.

Satyam is also listed in the US, where there is a mechanism for fining companies involved in irregularities.

India has also argued that imposition of penalty would have a negative effect on the rehabilitation roadmap now being pursued for the company, which is now called Mahindra Satyam after it was taken over by Tech Mahindra, the IT arm of the Mahindra group.

The Indian government approached SEC through the Securities and Exchange Board of India (SEBI), the domestic market regulator.

“It (Satyam) has been put back on its feet,” Khurshid said.

Satyam’s founder-head Ramalinga Raju stunned corporate India Jan 7 this year by admitting the multi-crore accounting fraud. The accused face charges of cheating, criminal conspiracy, falsification of records and forgery.