MUMBAI, Jan. 14: As the government mulls over a financial support package for beleaguered Satyam Computers amid simultaneous investigation by multiple agencies, contours of likely insider trading too are emerging which will keep the market regulator Securities and Exchange Board of India heavily occupied.
Market regulator Sebi's special team, set up to probe into the financial irregularities in Satyam Computers, has set its focus among other things on alleged ‘insider trading’ carried out by top executives in the IT firm in the recent past, sources said today. Reports reached Dalal Street about alleged price rigging in the Satyam stock by its promoters ~ the Raju family ~ with a regular break from 2001 to September 2008. It is alleged the chairman was involved in jacking up the stock price of Satyam and then off-loading the shares in bulks netting huge profit. Sources on Dalal Street say data with the bourses could help unravel the insider trading which had been on for almost seven years tracking back Mr Raju’s dubious credentials.
If the charges are proved correct the promoters ~ who allegedly sold more than four crore stocks after rigging the price ~ might have earned over Rs 1,100 crore, claim market watchers.
Another report based on the findings of the Registrar of Companies suggested on Wednesday that a few days or weeks ahead of Mr Raju’s total surrender, some big investors off-loaded their stake in Satyam between the last week of December and the first week of January ~ almost till 5 January.
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