Ricoh India is in focus today, on news that parent Ricoh Global, which holds more than 73 percent stake in the Indian company, will cut off all financial support going forward.
Ricoh India is in focus today on news that parent, Ricoh Global which holds more than 73 percent stake in the Indian company, will cut off all financial support.
In an interview to CNBC-TV18, Sandeep Parekh, Founder of Finsec Law Advisors spoke at length about the same.
Parekh said there has been an admission of fraud in the Indian subsidiary.
However, since it is a listed company, the question is what happens to the retail investors.
Even though Ricoh India is a listed company it does have a benefit of limited liability. Therefore, the parent technically does not have to reimburse the subsidiary for all the losses which it has incurred because of fraud, said Parekh.Watch accompanying video for more details.