SAT sets aside SEBI order barring Raju brothers in Satyam scam
[ad_1]
The Securities Appellate Tribunal (SAT) on Thursday set aside Sebi’s order banning Satyam Computer’s B Ramalinga Raju, B Rama Raju and others from securities markets for 14 years.
The Securities Appellate Tribunal (SAT) on Thursday set aside Sebi’s order banning Satyam Computer’s B Ramalinga Raju, B Rama Raju and others from securities markets for 14 years. Along with this, the Appellate Tribunal also directed the Securities and Exchange Board of India (SEBI) to issue a fresh order in this 14-year-old matter. SEBI’s two orders in the year 2018 were challenged by six people in SAT.
In these orders, these people associated with Satyam Computer were barred from being part of the securities market for 14 years. The Securities Appellate Tribunal termed SEBI’s approach as flawed and said that the reason behind imposing a ban of 14 years was not explained. Along with this, he quashed both the orders and asked to pass a fresh order within four months.
The market regulator had taken this action against Satyam Computer Services promoters Ramalinga Raju and Rama Raju for fudging financial statements and making illegal profits through insider trading. Apart from the Raju brothers, B Suryanarayana Raju and SRSR Holdings were accused of rigging Satyam Computer shares based on sensitive information.
The Satyam scam came into limelight in January 2009. Ramalinga Raju, the chairman of Satyam Computer at the time, had accepted the falsification of the company’s accounts. SEBI, in an order passed on October 16, 2018, banned V Srinivas and G Ramakrishna from the securities market for seven years. The two were also asked to return Rs 15.65 crore and Rs 11.5 crore, respectively, earned illegally.
SEBI, in another order passed on November 2, 2018, had banned Ramalinga Raju, Rama Raju, Suryanarayana Raju and SRSR Holdings for 14 years. Apart from this, he was also ordered to return Rs 813 crore earned illegally. In both these orders, SEBI had asked to return the illegally raised amount with 12 per cent interest from the date of January 7, 2009.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
[ad_2]
Source link
