Yes Bank, Satyam Technologies, and DHFL (Dewan Housing Finance Limited) were involved in significant manipulations and controversies in the Indian stock market:
- Yes Bank:
- Manipulation: Yes Bank faced allegations of financial mismanagement and governance issues. There were concerns about under-reporting of bad loans and improper lending practices.
- Stock Market Impact: The stock price of Yes Bank plummeted as these issues came to light, leading to significant losses for investors.
- Satyam Technologies (Tech Mahindra):
- Manipulation: Satyam Technologies, once a prominent IT services company in India, was involved in one of the largest corporate scandals in India’s history. Its founder and chairman, Ramalinga Raju, confessed to inflating the company’s financial statements and assets to the tune of billions of dollars.
- Stock Market Impact: The confession led to a massive crash in Satyam’s stock price and eroded investor confidence in the company and in corporate governance standards in India.
- DHFL (Dewan Housing Finance Limited):
- Manipulation: DHFL faced allegations of siphoning off funds and fraudulent transactions. There were accusations of DHFL promoters diverting funds to shell companies.
- Stock Market Impact: The stock price of DHFL plunged amidst concerns about its financial health and regulatory scrutiny. The company eventually defaulted on its debt obligations, leading to further turmoil in the financial markets.
These cases highlight the vulnerabilities in corporate governance, financial reporting, and regulatory oversight within the Indian stock market. They also underscore the importance of transparency and ethical practices in maintaining investor trust and market stability.
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