The SEC is reportedly investigating whether India’s Satyam Computer Services Ltd. misled investors in an alleged $1 billion accounting fraud. Bloomberg reports that SEC officials have discussed the case with regulatory counterparts in India and plan to coordinate their inquiries concerning Satyam. The SEC has jurisdiction over Satyam because Satyam’s American Depositary Receipts (ADRs) trade in the US.
Kirkland & Ellis’ Charles Clark (pictured) told Bloomberg that Satyam was “too big a matter for the SEC to take a pass.” He added that “what will make it challenging is the practicalities of investigating a fraud in a country that’s incredibly far away.”
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Satyam case was a disaster and we need more stringent policies