You are here: Home » Economy & Policy » News
Business Standard

Satyam scam: Sebi asks Raju, three others to return Rs 8.13 billion

The latest Sebi ruling, pertaining to insider trading and fraudulent activities, has been passed after the Securities Appellate Tribunal (SAT) directed it to pass a fresh order in the matter

Satyam Scam  |  Securities And Exchange Board Of India  |  Sebi

Press Trust of India  |  New Delhi 

Sebi probes sharp fall in the midcap stocks amid unfair trade allegations

Passing a fresh order in the nearly a decade-old Satyam scam, Friday barred B Ramalinga Raju and three other entities from the securities markets for 14 years and directed them to return Rs 8.13 billion worth unlawful gains with interest.

The 14-year ban imposed by the regulator would include the debarment period already served by them. Besides, has reduced the disgorgement amount to Rs 8.13 billion from Rs 12.58 billion along with interest, as per the order.

Besides Raju, founder of erstwhile Satyam Computer, the watchdog has passed the order against his brother B Rama Raju, B Suryanarayana Raju and SRSR Holdings Pvt Ltd.

The latest ruling, pertaining to insider trading and fraudulent activities, has been passed after the Securities Appellate Tribunal (SAT) directed it to pass a fresh order in the matter.

The debarment already undergone by Ramalinga Raju and Rama Raju since July 15, 2014 as well as Suryanarayana Raju and SRSR Holdings Pvt Ltd since September 10, 2015 would be taken into account for calculating the total 14-year ban period, according to the order.

These entities have been barred for violating regulations pertaining to PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) and PIT (Prohibition of Insider Trading).

The present case relates to Ramalinga Raju and Rama Raju -- who were promoters and directors of Satyam Computer Services -- falsifying the company's financial statements and making illegal gains by way of insider trading.

Besides, B Suryanarayana Raju and SRSR Holdings dealt with shares of Satyam Computer on the basis of unpublished price sensitive information.

While SRSR Holdings has been asked to disgorge Rs 6.75 billion,

Suryanarayana Raju has to pay Rs 818.4 million and Rama Raju has to cough up Rs 295.4 million. Ramalinga Raju has been directed to pay Rs 266.2 million, as per the order.

These amounts have to be paid along with 12 per cent annual interest effective from January 7, 2009 -- the day when the scam came to light through a letter written by Ramalinga Raju, then chief of Satyam Computer.

Sebi has directed the entities to deposit the amount within 45 days.

In July 2014, Sebi barred Ramalinga Raju, Rama Raju and others from the securities market for 14 years as well as asked them to disgorge illegal gains.

While agreeing with Sebi's finding that the individuals violated regulations, the tribunal had said the decision to uniformly restrain all the appellants from accessing the securities market for 14 years "without assigning any reasons is unjustified".

Similarly, the quantum of illegal gains directed to be disgorged by each appellant is based on grounds which are mutually contradictory and also without application of mind, the tribunal had added.

On January 7, 2009, Raju -- then Chairman of Satyam Computer admitted to manipulating the company's accounts.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 02 2018. 20:55 IST