Satyam scam: Merchant bankers under SEBI scanner

MUMBAI: The scam-hit Satyam Computer aside, the merchant bankers associated with it have also come under the scanner of the market regulator SEBI in its investigation into the IT firm and its share price dealings.

The enquiry is being conducted by SEBI General Manager Sunil Kumar A, who has been designated as Investigating Authority in the case. He has been asked to submit the report at the earliest.

"Whether any merchant banker is guilty of having contravened the SEBI (Merchant Bankers) Rules and Regulation 1992," the regulator said while constituting the investigating authority.

SEBI has also empowered the investigating authority to "seeki the assistance of officers of the board (SEBI) and any othe person and these persons shall be bound to render such assistance."

In the interest of the investors, public and the securities market, "no notice to the persons to be investigated should be given and therefore it is ordered that" the investigation might be conducted without such notice, SEBI Executive Director P K Nagpal said in the order.

On January 7, Satyam's founder B Ramalinga Raju disclosed massive financial irregularities at the company and resigned as the Chairman of the company. On the same day, DSP Merrill Lynch, which was roped in last month to advise on strategic options available to Satyam, also announced having terminated its engagement with the IT firm.

Satyam has appointed DSP Merrill Lynch as a merchant banker to review and suggest a plan to increase shareholder value following abortion of Satyam-Maytas deal.