Simultaneous investigation by several agencies and regulators in the scam struck Satyam Computer Services may not be the most appropriate way to dig out the truth, Bombay Stock Exchange chairman Jagdish Capoor said in Kolkata on Thursday.
"I am not sure if all the agencies launching investigation at the same time is the best way to bring out the truth expeditiously. With so many agencies involved, they will not be able to avoid stepping on each other's toes," Capoor said at an interactive session with the Indian Chamber of Commerce.
Capoor also felt that if there was seizure of records by one or the other investigating agency, the outcome might be further delayed.
BSE CEO M L Soneji said the exchange was investigating the trading data of Satyam.
"The exchange currently cannot say whether there was insider trading during the period between the announcement of the Maytas deal and the erstwhile Satyam chairman B Ramalinga Raju's confession, as that needs client level investigation."
Highlighting lack of corporate governance, he said this was an opportunity to revisit regulations to make company directors more responsible and auditors more accountable.
"The systems and checks we have put in place seem to have circumvented with ease over a long period. The sanctity of the auditing process, the role of independent directors and the inadequacy of regulations are all issues which need to be revisited in the light of shocking revelations," Capoor said.
About the economy crisis, he said though it had impacted the country, it was not as severe as in developed economies.
Capoor said there was some evidence to suggest that the worst could be behind as far as FII withdrawals were concerned. "The other positive sign is that the cash level of mutual funds has dropped to six per cent as a percentage of total assets under management which had risen to 18 per cent in November 2008," he said.
