The Government on Friday asked investigating agency SFIO to initiate prosecution proceedings against persons involved in Satyam accounting fraud and partners of Price Waterhouse, the auditors of the IT company.

"SFIO has been asked to begin prosecution for violation of company law in the Satyam case...it will also be against Price Waterhouse partners", a senior official of Corporate Affairs Ministry said.

Serious Fraud Investigation Office (SFIO), an arm of the Corporate Affairs Ministry, had investigated the multi-crore rupee Satyam accounting fraud and submitted its reports to the government detailing violations of company law by founder chairman B Ramalinga Raju and others.

The investigating agency will initiate proceedings on about 30 charges mostly under the Companies Act 1956, while the Central Bureau of Investigation (CBI) will be acting on five or six charges involving criminal offences under the penal code.

The SFIO charges deal with falsification of balance sheet and profit and loss accounts, rigging stock prices, filing of false income tax returns etc.

The Corporate Affairs Ministry asked the SFIO to initiate prosecution in the Satyam case after obtaining opinion of the Solicitor General of India.