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SEBI to review earnings of Nifty, Sensex companies

This article was posted on Jan 9, 2009 and is filed under Press Releases

Mumbai: Seeking to avoid a Satyam-like financial fraud, market regulator SEBI on Friday decided to review the earnings statement of all the companies that figure in the elite stock trackers Nifty-50 and Sensex-30.

“Such a review would be in relation to the last quarterly results and last audited annual financial results,” the regulator said in a statement.

SEBI will also prepare a panel of auditors to conduct the exercise, which would be taken following the publication of third quarterly results and is likely to be completed by
end-February.

The review comes on the heels of Satyam founder Ramalinga Raju disclosing a financial fraud amounting to about Rs 7,800 crore in the company over several years. SEBI has already ordered a probe into the share market dealings of Satyam, which has since been removed Nifty as well as BSE Sensex.

The company’s that figure in the stock trackers include India’s most valued Reliance Industries, Tata group companies, public sector companies like ONGC and IOC.

Following the revelations by Raju on Wednesday, shareholders wealth has eroded by Rs 2,50,000 crore in the day’s trading. The decision on review was taken after a meeting of the SEBI’s committee on disclosure and accounting standards.

source: DnaIndia

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