Q.
Is there any similarity between frauds committed by Rajat Gupata of USA and Ramalinga raju of India?
Asked by bhaskara rao,
26 Oct '12 02:23 pm
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Answers (2)
1.
No. Raju debauched with the accounts of his company Satyam for many years and used that money for his self benefit so much so that a day came there was no cash left even to pay to his employees. This is the fraud of the highest level because Satyam is a company in which shareholders had invested and instead of giving benefits to them and the company he was purchasing benaami properties in his son's company for the family's benefits.
Rajat Gupta's case is totally different. He has been punished for indulging in insider trading. He was one of the directors of Goldman Sachs and in a meeting it was made known that a prominent firm will buy a part of their shares. After acquisition of these shares the firm's stock price was likely to increase. He gave this information to one of his Indian friends on telephone and that man purchased huge stock of the shares immediately from the stock market and earned a neat profit. Unfortunately, Rajat Gupta's telephone was being tapped and he was found gu ...more
Answered by Manoj Adwani, 26 Oct '12 02:49 pm
Rajat Gupta's case is totally different. He has been punished for indulging in insider trading. He was one of the directors of Goldman Sachs and in a meeting it was made known that a prominent firm will buy a part of their shares. After acquisition of these shares the firm's stock price was likely to increase. He gave this information to one of his Indian friends on telephone and that man purchased huge stock of the shares immediately from the stock market and earned a neat profit. Unfortunately, Rajat Gupta's telephone was being tapped and he was found gu ...more
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