Mahindra Satyam has a new set of challenges to deal with. Shares of the company fell 11% on Wednesday after the CBI revealed yet another fraud at the company. The latest fraud is worth close to Rs5,000 crore and is separate from the Rs7,000 crore fraud that was revealed in January. There were also reports on Wednesday that Mahindra Satyam was looking for out-of-court settlements with companies that had sent it legal notices claiming a total repayment of Rs1,230 crore. Satyam denied the reports, saying it had no immediate plans to look at out-of-court settlements.
Corporate affairs minister Salman Khurshid said India’s Company Law Board or CLB will get a new chairman on Friday. Khurshid’s statement comes soon after the CLB’s previous chairman R Vasudevan was arrested for allegedly taking a bribe. The CLB is a quasi-judicial body that deals with disputes between companies.
The RBI says India’s banks will need to find ways to fund infrastructure projects like roads and ports. According to the RBI, banks may be required to provide long-term debt financing for 21% of the planned infrastructure projects worth $520 billion. The RBI also says banks must figure out how to extend credit to poorer people and people in rural areas.
Commerce and trade minister Anand Sharma has said the government has no plans to allow more foreign investment in the retail sector. Currently, India does not allow foreign direct investment in multi-brand retailers like Wal-Mart.
Coal India Limited indicated on Wednesday that it plans to acquire more coalmines in the US, Africa, Australia and parts of Asia. The company said it has already received 53 offers from companies for partnerships in overseas operations.
Infosys Technologies said it’s focusing on small acquisition to help it grow faster. The company currently has a cash pile of nearly $3 billion and is considering acquiring companies in consulting, back office and healthcare sectors.