Updated on Wednesday, January 07, 2009, 00:00 IST

Mumbai, Jan 07: Terming disclosures of financial wrong-doings at Satyam as an event of "horrifying magnitude," market regulator SEBI on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses.

"We are in touch with Ministry of Corporate Affairs... we are also in discussion with them as to what steps need to be taken from the perspective of power they have under the law and SEBI has under the law," SEBI Chairman C B Bhave said.

SEBI was also forwarding the letter written by Satyam's Chairman Ramalinga Raju on his stepping down with the confession that the profits in the company were inflated over the years, leading to wide gap between real and imaginary assets.

Satyam may be removed from Sensex, Nifty

Satyam Computers may be removed from the Sensex and Nifty following the revelation of manipulation in the company's accounts, analysts said.

Rajiv Mehta, senior analyst with India Infoline, a large brokerage house said his firm has immediately stopped covering Satyam and many other brokerage houses are also expected to do the same. There will not be any investor interest in the company anyway. The company may be removed from Sensex and Nifty, he said.

With the fall in its stock prices, Satyam has lost its weightage in the Sensex considerably over the recent past and currently has weightage of only 1.56 as of yesterday (Tuesday). While in nifty, the weightage is only 0.63 percent.

Bureau Report