Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: form 3cd :: TDS :: due date for vat payment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4%
ę General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

Satyam share price slump
September, 22nd 2009

The Central Bureau of Investigation (CBI) is set to quantify the hit that retail investors, mutual funds and foreign institutional investors (FIIs) took on their investments in scam-tainted Satyam Computer, following an erosion of the IT firms share price in January this year.

The magnitude of losses will feature in the second charge sheet, to be filed by the apex investigating agency, which now has proof that the IT firms defamed founder B Ramalinga Raju only made partial and selective disclosures on the scam to capital market regulator SEBI and stock exchanges. The additional charge sheet is set to focus on fund diversion and establishing the money trail.

We have sought information from Sebi on losses borne by retail investors on their investments in Satyam, following a fall in the share price in January this year. We are also eliciting information from mutual funds and FIIs, said CBI V Lakshminarayana, who heads the multi-disciplinary team probing the Satyam fraud.

Several institutional investors and banks have made huge mark-to-market losses on their investments in the erstwhile Satyam Computers.

The CBI had assessed the losses to the countrys biggest domestic investor Life Insurance Corporation (LIC) and banks in its first charge sheet. While LIC took a hit of around Rs 948 crore, a clutch of banks, including UCO Bank, Punjab National Bank, Union Bank of India, Allahabad Bank, Indian Bank and Oriental Bank of Commerce, suffered losses of around Rs 10 crore.

The CBI filed the first charge sheet in April this year, exactly three months after Raju scripted his fall. The premier agency confirmed that Raju had fudged accounts with eight others accused in Indias biggest corporate fraud, but remained silent on the diversion of funds from the IT firm that many feel lies at the heart of the scam.

The promoter is understood to siphoned-off money to tax havens and re-routed them into the country through several front companies. The CBI has already sent letters rogatory to several countries, including Mauritius, to establish the fund trail.

The first phase of investigation revealed that the fraud was orchestrated between 2001 and 2009. Initially, the companys results were manipulated by the accused to show heavy profits and keep share prices artificially high. During this phase, the promoters intelligently offloaded the shares of their family members, making a neat Rs 715 crore and lowering their stake.

This was an outright fraud on other stakeholders, including retail investors. Satyam was run like a proprietorship concern, throwing corporate governance to the winds. The promoters, charged of criminal conspiracy, deceived investors and made wrongful gains for themselves, the CBI had said. Raju and his family have lost control over Satyam. Tech Mahindra is the new owner of the Hyderabad-based outsourcer.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions