Satyam tanks 9 pc on bourses
Beleaguered Satyam Computer plunged as much as nine per cent on the domestic bourses amid reports that the ex-promoters and top officials of the company may have indulged into insider trading.business Updated: Jan 20, 2009 12:15 IST
Beleaguered Satyam Computer on Tuesday plunged as much as nine per cent on the domestic bourses amid reports that the ex-promoters and top officials of the company may have indulged into insider trading.
Shares of the company opened down 9.43 per cent to touch an intra-day low of Rs 23.05 on the Bombay Stock Exchange. It was later quoting at Rs 23.60, down 7.27 per cent on the bourse.
Similar fate was seen on the National Stock Exchange, where the scrip opened down to hit an intra-day low of Rs 23, down 9.80 per cent. It was later trading at Rs 24, down 5.88 per cent. Total 38.49 lakh shares got traded on the bourses.
Marketmen said that as of now the movement of the scrip is totally news driven. It is also a fascination for intra-day traders, an analyst with the domestic brokerage firm said.
According to sources in the Ministry of Corporate Affairs preliminary investigation into the Rs 7,800-crore fraud in the Hyderabad-based IT firm suggests a violation of insider trading norms under the Companies Act.
RoC's report said violations may have occurred under sections 372A, 205A, 297, 299, 300 and 207 of the companies law.
The report also said there may have been window-dressing of published financial statements with an intention to allure investors, resulting in false value of shares appreciating in the stock exchanges.
The scrip which gained four per cent on the bourses yesterday amid government efforts to ensure undisturbed operations, today tanked after the government expanded the scope of SFIO investigation by bringing in two other Raju family promoted companies -- Maytas Properties and Maytas Infrastructure -- under the purview of the probe.