Passing a fresh order in the nearly a decade-old Satyam scam, capital markets regulator Sebi or Securities and Exchange Board of India on Friday barred B Ramalinga Raju and three other entities from the securities markets for 14 years and directed them to return Rs. 813 crore worth unlawful gains with interest. The 14-year ban imposed by the regulator would include the debarment period already served by them. Besides, the regulator has reduced the disgorgement amount to Rs. 813.40 crore from Rs. 1,258.88 crore 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 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.
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. 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.