The government will refer the financial bungling by Satyam Computer to the Serious Fraud Investigation Office (SFIO), a top corporate affairs ministry official said.

Millions of shareholders would be hurt by the developments as the Satyam management was not fair to them, said the official, who did not want to be named.

The SFIO investigation would form part of the coordinated action by all the regulatory and enforcement agencies, the official said.

Corporate Affairs Minister Prem Chand Gupta could not be contacted immediately.

"The case will definitely be referred to SFIO. It is a serious fraud... now all the agencies like stock exchanges, SEBI, Company Law Board and Registrar of Companies (RoC) should make a coordinated effort," he said, adding that the process of investigation was on.

The MCA official said apex institutions of chartered accounts and company secretaries, ICAI and ICSI, will also be directed to look into the role of directors and auditors.

"If prima facie (a) case is found then (the) disciplinary board of these institutions will be asked to take actions against auditors and directors and prosecution will be launched certainly," he said.

Meanwhile, SEBI Chairman C B Bhave said, "We are in touch with (the) 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."

Bhave said the development would have serious implications for the market. Jurisdictions in this case lie with various authorities and accordingly, "we are in touch with (the) Ministry of Corporate Affairs for coordinated action". X

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