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Business News/ Companies / People/  SAT stays Sebi penalty on Satyam’s Ramalinga Raju, 4 others; upholds ban
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SAT stays Sebi penalty on Satyam’s Ramalinga Raju, 4 others; upholds ban

The tribunal posted the matter for further hearing in Dec, when it will decide whether to admit the pleas of the Raju brothers and others against Sebi order

A file photo of B. Ramalinga Raju. Photo: BloombergPremium
A file photo of B. Ramalinga Raju. Photo: Bloomberg

Mumbai: The Securities Appellate Tribunal (SAT) on Monday stayed the 1,849 crore penalty that Securities and Exchange Board of India (Sebi) had slapped on the founder-chairman of Satyam, B. Ramalinga Raju and four others, but upheld a ban on them from accessing the markets.

The tribunal posted the matter for further hearing in December, when it will decide whether to admit the pleas of the Raju brothers and others against Sebi order. The tribunal asked Sebi to explain why such a large amount was imposed as part of a disgorgement order and to file an affidavit stating its position by 7 November.

The tribunal also asked Raju and four others named in the scam to file counter-affidavits by 15 December.

The four others facing the prohibitory orders are Raju’s brother B. Rama Raju (the then managing director of Satyam), Vadlamani Srinivas (ex-chief financial officer), G. Ramakrishna (ex vice-president) and V.S. Prabhakar Gupta (ex-head of internal audit). Following the Sebi order, the Raju brothers had moved the SAT last Friday.

Sebi on 15 July this year barred Ramalinga Raju and the four others from accessing the market for 14 years and asked them to return 1,849 crore in unlawful gains with 12% interest, in total a disgorgement amount of over 3,000 crore. Sebi asked them to pay up within 45 days of the order, closing five-and-a-half year long probe into the country’s biggest corporate fraud.

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Published: 08 Sep 2014, 07:20 PM IST
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