Another scandal rocks Satyam

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Another scandal rocks Satyam

Promoters of Satyam are finding themselves in yet another scandal. They pledged 5.5 crore shares to four institutions. These shares were pledged in 2006. Sources say Satyam promoters had pledged shares to IL&FS trustees, DSP ML.

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Promoters of Satyam are finding themselves in yet another scandal. They pledged 5.5 crore shares to four institutions. These shares were pledged in 2006. Sources say Satyam promoters had pledged shares to IL&FS trustees, DSP ML.

IL&FS Trustees sold 1.04 crore shares, or nearly 1.5%, since December 24. It has also sold 44.1 lakh shares on December 29 in the open market.

DSP ML does not hold pledged shares anymore, reports CNBC TV18, quoting Sources. Market sources say that Raju's stake in Satyam might have fallen to as low 3.5-4%.

CNBC-TV18 learns that the Ministry of Corporate Affairs is waiting for the Registrar of Companies report on Satyam which will submit report on Satyam-Maytas in about two weeks.

Here is a verbatim transcript of Sajeet Manghat's comments on CNBC-TV18. Also watch the accompanying video.

Now that the Board has only 5 members - 2 independent, and 3 management members, it is unlikely that any major decision will be taken on January 10 till the Board is fully reconstituted and deliberations are done further. There is another factor that shareholders will be looking at, which is will Ramalinga Raju resign from the Board? That seems unlikely because the management is in majority at this point.

The other factor is that as and when independent directors are appointed by Satyam, they will have to go to the shareholders for their appointment and at that point other institutional shareholders can come together and create a majority and then pass a resolution for Mr. Raju's removal. As of now, it looks like the Board meeting is not going to be advanced and will take place on January 10.