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Rediff.com  » Business » Probe into SKS still on: Sebi

Probe into SKS still on: Sebi

October 25, 2010 18:44 IST

SebiMarket regulator Securities and Exchange Board of India said on Monday it is still investigating the issue of SKS Microfinance sacking its chief operating office Suresh Gurumani -- which raised the hackles of investors -- shortly after a successful Rs 1,600-crore (Rs 16-billion) public offer.

"The investigation is still on..," Sebi chief C B Bhave told reporters in Mumbai.

After raising Rs 1,600 crore through an initial public offer in August, the Hyderabad-based company on October 4 terminated the services of Gurumani four years ahead of the expiry of contract and named M R Rao as his successor. Gurumani had a five-year contract starting from April 1, 2009.

A few days later on October 14 the Securities and Exchange Board of India in a communique

to the company had asked whether the termination of Gurumani was planned when SKS had filed the draft prospectus in March for the initial public offer.

The company replied to the Sebi questionnaire the following day, but declined to make public the details. Gurumani was earlier director at consumer banking at Barclays.

After his sacking SKS founder Vikram Akula has become the executive chairman. Gurumani moved Andhra Pradesh High Court which allowed him to continue as a director on board till final orders.

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