a)Mr. B Ramalinga Raju, ex-Chairman, Satyam Computer Services Limited, individually as well as acting in concert with others falsified books of account and misstated financials of Satyam Computers and, thus, portrayed a false picture of its published quarterly/annual results;
b)False CEO/CFO certifications were provided, and various announcements were made and advertisements/press releases were issued on basis of falsified and misstated financial position of company and indulged in insider trading on basis of unpublished price sensitive information (UPSI).
The SEBI held as under:
1)Given the vital function of protecting investors and safeguarding the integrity of the securities market vested in SEBI and the commensurate powers given to it under the securities laws, it was necessary for SEBI to exercise these powers firmly and effectively to insulate the market and its investors against the fraudulent actions of the participants in the securities market.
2)One of the basic premises that underlines the integrity of securities market is that the participants conform to standards of transparency, good governance and ethical behaviour prescribed in securities laws and do not resort to manipulative, deceptive and fraudulent activities.
3)In this case, the acts, omissions and conduct of the noticees, as brought out in the SCNs had been in violation of this basic premise. The financial frauds as found in this case were inimical to the interests of the investors in securities and endangered the market integrity. This was a case where befitting enforcement action was necessary to send a stern message to the market to create an effective deterrence.
4)The Acts and omissions of ex-Chairman/Managing Director/CFO, etc., were, clearly a device employed by noticees to defraud in connection with dealing in securities of Satyam Computers and would fall within ambit of prohibited activities under section 12A(a)(b)(c) of The SEBI Act and regulations 3 and 4 of PFUTP Regulations;
5)In order to protect interest of investors and integrity of securities market, Ramalinga Raju alongwith others were restrained from accessing securities market and prohibited from dealing in securities, directly or indirectly, or being associated with securities market in any manner, whatsoever, for a period of 14 years – Satyam Computer Services Ltd. In re (2014) 47 taxmann.com 47 (SEBI)