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Sebi to appeal against court order on Raju interrogation

January 28, 2009 16:38 IST

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Market regulator Securities and Exchange Board of India said on Wednesday it would appeal against a magistrate court's order denying permission to it to interrogate Satyam [Get Quote] founder Ramalinga Raju and his brother Rama Raju in connection with the Rs 7,800 crore (Rs 78-billion) fraud in the company.

"We are going for appeal," Sebi chairman C B Bhave told reporters in New Delhi.

The 6th additional chief metropolitan magistrate in Hyderabad had rejected Sebi's application seeking a day's custody of the Raju brothers.

Sebi is probing the case to find if there was any insider trading in the company, whose books Raju admitted to cooking over several years.

The Raju brothers, along with Satyam's former CFO Vadlamani Srinivas, are in judicial custody awaiting charges to be filed against them.

On January 7, Raju disclosed that he had falsified profits and created fictitious assets in the company, which is now being administered by a government-appointed board.

The new board said on Tuesday it had received many offers for a takeover, but ruled out selling the company in parts.

Asked whether engineering major L&T, which has increased its stake in Satyam to over 12 per cent through open market transactions, has approached the regulator seeking waiver of open offer conditions, Bhave said: "I cannot comment."

L&T is reportedly seeking waiver in a clause that requires it to make an open offer to buy 20 per cent shares taking the average price of the last six months.

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