Electronic Data Systems ( EDS) reassigned its controller and principal accounting officer after he was notified by the Securities and Exchange Commission that he may face legal action for violating securities laws, the company said late Tuesday. Scot McDonald received a Wells notice related to transactions between EDS and Delphi ( DPHIQ). SEC staff issue such notices ahead of recommending that the SEC bring civil action against the person for possible federal securities laws violations. EDS did not receive a Wells notice itself and the company said it is cooperating with the SEC in the investigation. William Casper, previously chief accountant for EDS, was appointed interim controller and principal accounting officer for the IT-services company. McDonald has been reassigned to vice president of financial planning and analysis while the matter is pending. Separately, EDS said it would merge its Indian operations with Mphasis. EDS recently bought a controlling stake in the Indian business process-outsourcing and IT-services firm. "We're creating a new family with EDS and Mphasis as one entity, with combined operations and one voice to provide greater efficiency," Steve Heidt, vice president of service delivery operations, said in a statement. "The operating plan will leverage the strong capabilities resident in both companies to better address market needs." EDS India has a staff of 3,000. The combined entity will boast over 15,000 employees. By the end of the year, EDS expects to grow its India operations to 20,000 people. EDS shares were off 0.9% in Wednesday trading, losing 20 cents to $23.22.