India's stock market regulator has barred the eight convicts in the Satyam scam, including family members of the Ramalinga Raju, from trading stocks on the exchanges for seven years.
As per the mandate of the Securities and Exchange Board of India (SEBI), the country's stock exchanges -- Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) -- have told the brokerages to ensure that the above persons do not trade in securities for seven years.
The entities banned to trade stocks include Raju's mother B Appalanarasamma, his two sons -- Teja Raju and Rama Raju Jr -- his brother Suryanarayana Raju, B Jhansi Rani (wife of Suryanarayana), Chintalapati Srinivasa (then Director of Satyam), Chintalapati Holdings Pvt Ltd and SRSR Holdings (controlled by Raju brothers), the exchanges said in circulars.
Sebi also asked the main convict in the accounting scandal at erstwhile Satyam Computer Services Ramalinga Raju, and nine others to return the unlawful gains worth over Rs.1,800 crore.
In addition, they have been asked to pay an interest of about Rs 1,500 crore on the illegal gains, as the scam dates back to 7 January, 2009. On that day, Satyam founder Raju had confessed to manipulating the company's accounting books to the tune of Rs.7,136 crore.
As per the Sebi order, Ramalinga Raju and Rama Raju have to return over Rs.56 crore gains they made by selling or transferring their shares in Satyam Computer. While the illegal gains earned by Raju's sons are pegged at around about Rs.95 crore, SRSR Holdings was estimated to have made Rs.1,258.88 crore, PTI reported.
On 10 April, a special court in Hyderabad had convicted Raju and nine other entities of committing one of the largest corporate scandals in the country and sentenced them to seven years of rigorous imprisonment.
