MUMBAI, INDIA: SEBI chairman C B Bhave said on Monday that Satyam chairman Ramalinga Raju's confession about the misappropriations in the company balance sheet is of “horrifying magnitude”.

Reacting to the development that caused heavy loss to Satyam shares, Bhave said that SEBI would take all steps under the law, for which it has started discussions with government and bourses, according to a PTI report.

"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," he said.

SEBI was also forwarding the resignation letter written by Ramalinga Raju, in which he had confessed about the misappropriation in the company.

Bhave said SEBI is speaking to the different exchanges to see if trading of Satyam stocks should be stopped.

Meanwhile, according to a market observer, US stock exchange might consider removing Satyam from its listing.