Satyam Computer’s Share to be Delisted from Stock Exchange
7Jan2009 Filed under: Latest News Author: jaggySatyam Computers may be removed from the Sensex and Nifty following the revelation of manipulation in the company’s accounts, analysts said. Rajiv Mehta, senior analyst with India Infoline, a large brokerage house said his firm has immediately stopped covering Satyam and many other brokerage houses are also expected to do the same. There will not be any investor interest in the company anyway. The company may be removed from Sensex and nifty, he said.
With the fall in its stock prices, Satyam has lost its weightage in the Sensex considerably over the recent past and currently has weightage of only 1.56 as of Tuesday. While in nifty, the weightage is only 0.63 per cent.
As usual, we Indians have gone into hyperventilation mode over the fraud comitted by Satyam. Looking at the long term valuation of this company & being the favourite among investors, it seems that there was never an element of doubt about the company. This instance of Satyam has shattered our faith in the public limited companies. It again proves that minority shareholders in India are taken for granted by promoters and directors.
A second thing is, for people who say every Indian company will be distrusted now, it’s simply defeatist thinking. The US has seen far far bigger frauds, and in some cases like the Madoff scandal, the cream of their experts and even banks have been shown to have been criminally negligent. Does that mean we declare the whole financial class criminal there? I don’t think so. The important thing is to introspect on what we could have done earlier, and move swiftly to punish the Satyam management that was responsible, as also ensure the future of the firm’s employees is not endangered.
What should SEBI/ Govt. deal with this Satyam Computer’s Financial Bankrupt?
- Immediately Arrest B Ramalinga Raju & his Family.
- (Best lesson to be taught i.e never mess with people’s hard earned money.)
- Suspend License of Auditor firm with immediate effect.
- Seal the office of Auditors for accumulating evidence.
- Arrest immediately All Partners of Audit Firm.
- Remove its listing from Sensex & Nifty.
5 Responses to “Satyam Computer’s Share to be Delisted from Stock Exchange”
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what will happen to the stocks if it is delisted from nifty and BSE. I mean how will one trade the stocks remaining with him after jan 12
Yes,i to agree with Jawahar,can any one suggest what is future of stayam stock
I guess this may be the scene with other companies in India as well. May be the benefits given by the Indian GOVT. under STPI and others was misused and profits eroded from the company to the personal benefits.
I think what Jawahar wrote could be true. Satyam has been in good business indeed. They have clients base and the billing rates for SAP implementation is really too high compared to salaries. So, definitely, Satyam was making profit. The statement that all the profit figures were inflated, cannot be true. So, I strongly believe your assumptions are correct.
I think i have an interesting point to make. They say little knowledge is too dangerous. But having watched satyam’s events on daily basis, i am quite sure there is a big probability, that my claim can be true ,though its definitely a dangerous claim.
What if this ramalinga raju’s letter is just a big “Lie” .
I am going to make some assumptions here:
1. Maytas was really the source of trouble and never it was satyam, as raju claims.
2. There were no inflated profits and Satyam’s balance sheets are clean.
These assumptions leave us with the question – “Then why Mr.Raju has to give a letter that the profits were inflated” – which leads to third assumption of mine.
3. Mr. Raju had diverted money from satyam’s balance sheet into Maytas or somewhere and claims that there were artifical money due to inflated profits.
Now this is a interesting deduction and most of you are going to dismiss it by saying they are just assumptions. There is a strong reason why this can’t be just assumption.
Answer this. What could be the reason for Mr.raju to inflate the profits. Do you really think the fear of competition and need of posting good margins can drive a person of his stature, to risk his life and to commit such a big fraudelent activity.