 "Satyam Computer case: Sebi lowers disgorgement amount to Rs 622 crore")
The Securities and Exchange Board of India (Sebi) has lowered from Rs 813 crore to Rs 622 crore the amount that promoters of Satyam Computer Services (SCSL) have to disgorge.
In February, the Securities Appellate Tribunal (SAT) had remanded the matter back to Sebi, directing it to recalculate the unlawful gains and reconsider the ban on promoters. It was the third order by the tribunal in the Satyam matter.
The market regulator, in its order in November 2018, had barred Satyam’s former management — B Suryanarayana Raju, B Rama Raju, and B Ramalinga Raju — from accessing the securities market for 14 years. The 14-year period was to be considered from July 2014.
The revised order issued by Sebi whole-time member (WTM) Ananth Narayan has barred B Ramalinga Raju and B Rama Raju from the securities market till July 2028.
Further, on the disgorgement, Sebi has directed the payment of 12 per cent per annum simple interest since January 2009.
“The conclusion that Ramalinga Raju and Rama Raju had orchestrated the whole Satyam fraud was upheld by the first SAT order. However, taking into consideration the period of debarment already undergone, and considering that the third SAT order has directed that noticees cannot be worse of on remand, I find that these noticees are required to undergo the remaining period of debarment as directed in the first and fourth Sebi orders,” noted the Sebi WTM.
No further restraint has been imposed on B Suryanarayana Raju, SRSR Holdings, V Srinivas, and G Ramakrishna in this revised Sebi order.
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The order pointed out that B Suryanarayana Raju and SRSR Holdings had already undergone a debarment for seven years.
Further, Sebi noted that Ramalinga Raju, Rama Raju, V Srinivas, and G Ramakrishna will continue to remain under restraint as directed by the Supreme Court.
“Directions of restraint/debarment passed in this order shall be subject to any direction by the Supreme Court in the aforesaid appeals,” said the Sebi order.
While sending the case back to Sebi in February, the tribunal had asked Sebi to reconsider the intrinsic value of shares while calculating unlawful gain.
SAT had also asked Sebi to reconsider the issue of pledge of shares.
“..23.25 per cent percentage of each SCSL share may be taken as intrinsic value throughout the UPSI period / fraud period that is from 2001 to 2008. Thus, after considering the intrinsic value, the unlawful gain on sale of each SCSL share during the entire period of 2001 to 2008 is 76.75 per cent percentage of sale consideration of each SCSL shares,” the Sebi order stated.