Friday, August 17, 2012

Oracle-SEC settlement and Government of India

I wonder what is really happening. Read this abstract of a BBC article. For reading full article please visit BBC-Oracle pays $2m to settle with SEC over India operation

"Oracle Software is agreeing to pay $2m (£1.27m) to settle federal civil charges of failing to prevent secret payments in its Indian sales operation...."

"...Indian subsidiary to secretly set aside money - used to make unauthorised payments to phony local vendors..."

"...subsidiary sold software licenses and services to the Indian government and kept some of the sale proceeds off Oracle's books...."

"...Oracle exposed itself to the risk that these hidden funds would be put to illegal use..."

"...Oracle...neither admitted nor denied wrongdoing in the settlement...." - BBC August 16, 2012

An incident happened in India, by an Indian arm of a US company involving Indian entities and SEC is trying the parent company in US and takes the fine also!!!

What exactly we are doing here in India? Are we outsourcing the justice system? Why SEC is expanding its wings to Indian operations of US companies? Isn't better for SEC to coordinate it with SEBI/Ministry of Company Affairs (MCA) etc? This settlement creates more questions than answers.



1. Oracle pays $2m to settle with SEC over India operation

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