{"id":203972,"date":"2018-10-20T11:30:58","date_gmt":"2018-10-20T06:00:58","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=203972"},"modified":"2018-11-12T18:19:18","modified_gmt":"2018-11-12T12:49:18","slug":"role-of-all-accused-in-the-matter-of-satyam-computer-services-ltd-found-to-be-different%e2%94%80-no-uniform-order-of-restrain-from-access-to-securities-market-can-be-given","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/20\/role-of-all-accused-in-the-matter-of-satyam-computer-services-ltd-found-to-be-different%e2%94%80-no-uniform-order-of-restrain-from-access-to-securities-market-can-be-given\/","title":{"rendered":"Satyam Case |SEBI reduces period of restraint order from accessing in securities market"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities Exchange Board of India, Mumbai:<\/strong> The present case was remanded to SEBI from the order of Securities Appellant Tribunal before G. Mahalingam (Whole Time Member).<\/p>\n<p style=\"text-align: justify;\">The question before SEBI was how to compute disgorgement amount based on inputs provided by the noticees and the period for which the noticees are to be restrained from accessing in the securities market and dealing in securities.<\/p>\n<p style=\"text-align: justify;\">The facts of the case were that SEBI had passed its order against V. Srinivas (CFO), G. Ramakrishna (VP Finance) and Prabhakara Gupta (Head, Internal Audit), Ramalinga Raju and Rama Raju holding them liable under Sections 12A (a), (b), (c), (d) and (e) of the SEBI Act; regulations 3(b),(c) and (d), regulations 4(1) and regulations 4(2)(a),(e),(f),(k) and (r) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003; and regulations 3 and 4 of the SEBI (Prohibition of Insider Trading) Regulations, 1992. Thereafter an appeal was preferred to the Securities Appellant Tribunal which affirmed the finding of SEBI on merits but remanded the case on grounds that the amount of disgorgement has been arrived at were based on closing price on the date of sales while it should be on the date of actual sales proceeds and that the cost of acquisition and taxes paid were not deducted. It was also alleged that SEBI uniformly restrained all the appellants from accessing the securities market for a period of 14 years without any reasonable cause. SEBI viewed that SAT in its order had observed Ramalinga Raju and Rama Raju to have created fictitious invoices and receipts whereas V. Srinivas, G. Ramakrishna, and Prabhakara Gupta though knew about the above fictitious documents allowed books of Satyam to be formed on the basis of these documents.<\/p>\n<p style=\"text-align: justify;\">Board observed that the role of all the accused were different and similar restraint order could not have been given therefore SEBI directed to restrain the two noticee V. Srinivas and G. Ramakrishna from accessing securities market and dealing in securities for 7 years but for noticee VS Prabhakara accessing securities market and dealing in securities was restrained for 4 years deducting the time period already restrained for. The matter was disposed of with the above direction. [In the matter of Satyam Computer Services Ltd. (SCSL<strong>),<\/strong>\u00a0<a href=\"http:\/\/scconline.com\/DocumentLink\/1MUQJ1CC\"><b>2018 SCC OnLine SEBI 165<\/b><\/a>, order dated 16-10-2018]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities Exchange Board of India, Mumbai: The present case was remanded to SEBI from the order of Securities Appellant Tribunal before G. <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[31613,32137,32138,29663],"class_list":["post-203972","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-noticee","tag-restrain-order","tag-satyam","tag-securities-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - 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Mahalingam, (Whole Time Member) has granted limited relaxations to the noticee, namely N. Ravichandran, Anita Ravichandran and Hemant Patel, for inter alia availing benefits of corporate actions during the restraint period, dematerializing physical shares and extension of timeline for selling shares lying\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255111,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/04\/sebi-monotonous-modus-operandi-modulated-endgame-issue-of-gdr-artificial-arrangement-supported-by-the-subscribing-company-itself-restrained-and-to-disgorge\/","url_meta":{"origin":203972,"position":2},"title":"SEBI| Monotonous modus operandi, modulated endgame |Issue of GDR, artificial arrangement, supported by the subscribing Company itself-Restrained and to disgorge","author":"Editor","date":"October 4, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI)-G Mahalingam, Whole Time Member, in a detailed 95 paged order, while disposing off the proceedings against Noticee 1 without any directions, considering the order for winding up of the Company by the High Court of Calcutta, issued directions for Noticee 1 in case\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":221641,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/01\/sebi-high-volumes-of-self-trades-executed-by-the-noticees-could-not-have-any-purpose-other-than-to-create-artificial-volumes-and-misleading-appearances-of-trading-in-the-scrips-thereby-adversely-imp\/","url_meta":{"origin":203972,"position":3},"title":"SEBI | High volumes of self-trades executed by Noticees could not have any purpose other than to create artificial volumes and misleading appearances of trading in scrips thereby adversely impacting market","author":"Bhumika Indulia","date":"November 1, 2019","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): S.K. 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