Date:10/01/2009 URL: http://www.thehindu.com/2009/01/10/stories/2009011055731600.htm

Business

SEBI to review earnings of Nifty, Sensex companies

MUMBAI: Seeking to avoid a Satyam-like financial fraud, the Securities and Exchange Board of India on Friday decided to review the earnings statement of all 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 from Nifty and BSE Sensex.

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