SEBI studying Satyam-Maytas ‘deal’ December 20, 2008
Posted by dhirendra1972 in Currecny futures segment, Huge investors, Large institutional investors, Promoters, Securities Market, Shareholders.Tags: Debts, Gain, Investors, Markets, Segments, Shares
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The Maytas deal that Satyam Computer had recently proposed, and then backtracked on the face of huge investor outcry, has come under the regulatory scrutiny. On Friday, C B Bhave, Sebi chairman, said the regulator was studying the corporate governance issues concerning Satyam, Maytas Infrastructure and Maytas Properties.
‘‘ We do not want to react immediately to the incident (the acquisition bid that triggered investor outrage)… we will study issues involved and then come to a conclusion,” Bhave told reporters on the sidelines of a conference on securities markets hosted by National Institute of Securities Markets.
Bhave refused to comment any further on the issue saying that would be premature. The study would take whatever time it requires, he said.
On Monday evening, Hyberabadheadquartered Satyam had said it would spend about $1.6 billion from its reserves and also take some debts to gain majority control in Maytas Infra, a listed entity, and unlisted Maytas Properties. Both the companies which were proposed to be acquired were under the management control of Satyam’s promoters and their family members. According to one estimate, if Satyam had its way, the promoters would have made at least $1.4 billion at the cost of other non-promoter shareholders of the company.
Following huge investor outcry about dilution of corporate governance standards by Satyam’s board members, that included three promoters of the company, the company back tracked and hastily announced a buy back proposal. However, with several questions being raised about the conduct of the board members, including some by large institutional investors, the regulator has now decided to have a close look at the company’s recent decisions.
Other than the Satyam-Maytas affair, Sebi was looking at easing some of the restrictions in the currency futures segment and the possibility of including more market participants in that market, Bhave said.
Ref: theeconomictimes
