New York: The New York Stock Exchange has
warned Satyam Computer (now rebranded as Mahindra Satyam) that
it might initiate delisting procedures against the company for
late filing of financial statements.
"NYSE Regulation will closely monitor the status of the
company's late filing and related public disclosure for up to
an initial six-month period from the report's original due
date."
NYSE Regulation could commence delisting proceedings at
any time during the period that is available to complete the
filing, if circumstances warrant," Mahindra Satyam said in a
disclosure to the US Securities and Exchange Commission.
The US Regulator added that the company would be included
in the late filers list of the NYSE with effect from October
22 as it failed to submit its annual report by October 15.
"The letter indicated that the NYSE Regulation, may, in
its sole discretion, allow the company's securities to trade
for up to an additional six months depending on specific
circumstances," the filing added.
Meanwhile, India's Company Law Board (CLB) in its order
dated October 15 and 16 had extended "to June 30, 2010 the
time for filing of document required to be filed by the
company with the various statutory authorities
in India, including the financial statements for financial years 2008
and 2009 and the quarterly financial reports as required under
the company's listing agreements with the stock exchanges."
In January, Satyam founder B Ramalinga Raju had confessed
to cooking up the company's account books for several years,
leading to a multi-crore scam.
Following the announcement on January 7, the New York
Stock Exchange halted trading in Satyam Computer at its
bourses in the US as well as in Amsterdam in Europe, after in
pre-market trade in the US, Satyam stock plunged by over 90
per cent to USD 0.85.
In April the NYSE Euronext approved the delisting of the
company's American Depository Shares (ADS) from the exchange.
However, the company's shares continue to remain listed
on the Bombay Stock Exchange and the National Stock Exchange
and its ADSs continue to be traded on the NYSE.
Bureau Report
First Published: Wednesday, October 21, 2009, 15:23