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Halting trade in Satyam, a tough call: Kotak
January 09, 2009 14:03 IST
"It is a pretty tough judgment to say whether you stop trading or not ... These are path-breaking events ... in a way, events which Indian capital markets had not seen till now," Kotak told reporters on the sidelines of a CII function.
Against stopping the trading there is an argument that all the information should be provided to investors and they make the best judgment whether to trade, he said.
"(An) argument could be the moment you stop trading, you run the risk of illiquidity...Here at least that there could be a different kind of bets being taken by investors...," he said.
Kotak said nobody really knows what is going on inside the company. "I am sure regulators are focused on it and will come out of the situation pretty quickly," he added.
Trading in Satyam Computer ADRs was halted on the NYSE on January seven after the scrip fell by over 90 per cent in pre-trading.
In India, the trading has not been halted, even though the scrip fell from as high as Rs 188.70 before the announcement of financial wrong-doing by Satyam Computer's founder chairman B Ramalinga Raju, to Rs 39.95 on January 7.
Today, the scrip fell as low as Rs 11 and is now ruling at Rs 21.60 on the BSE. On the NSE, it fell to the sub-face value at Rs 6 during intra-day trading today.
Circuit filters did not come into operation as Satyam was a bluechip scrip and on Thursday it was taken out of the Sensex.
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