Satyam sacked from various indices..

[AW10]

Effective from Monday 12Jan, Satyam has been replaced from almost all the indices of BSE and NSE. Below is the extract from NSE release for NSE indices.

Do you think it gives u an edge for trading on Monday. Keep a watch on the movement of new stocks entring indices ?

Will we be able to compare Nifty value of friday close to Monday close now, knowing that underlying content has changed ?

The Index Maintenance Sub-Committee has decided to make the following changes in various indices during its review. These changes shall become effective from January 12, 2009.

(1)S&P CNX Nifty Index

The following company is being excluded:
1 Satyam Computer Services Ltd.

The following company is being included:
1 Reliance Capital Ltd.

(2) CNX Nifty Junior Index
The following company is being excluded:
1 Reliance Capital Ltd.

The following company is being included:
1 Glenmark Pharmaceuticals Ltd.

(3) CNX 100 Index


The following company is being excluded:
1 Satyam Computer Services Ltd.

The following company is being included:
1 Glenmark Pharmaceuticals Ltd.

(4) S&P CNX 500 Index


The following company is being excluded:
1 Satyam Computer Services Ltd.

The following company is being included:
1 Cairn India Ltd.


(5) CNX IT Index

The following company is being excluded:

1 Satyam Computer Services Ltd.

The following company is being included:

1 Core Projects & Technologies Ltd.


(6) CNX Service Sector Index

The following company is being excluded:
1 Satyam Computer Services Ltd.

The following company is being included:
1 Power Grid Corporation of India Ltd.

Happy Trading

 

[Sunil]

The % of the new component in Nifty 50 matters....

Changes in big indices trouble only index arbitrageurs & index-based fund managers...
Pure index index traders will not feel any difference at all.

By the way, Satyam is being removed from the F&O segment w.e.f. 29-Jan-09. All Feb & March contracts will thus expire on 29-Jan-09.



Two Nursery rhymes for capital market participants doing the rounds:

1.
Raju Chacha sat on the wall
Raju Chacha had a great fall
Balance Sheet died
Shareholders cried
Raju Chacha mad a fraud


2.
Raju Beta
Yes Baba
Cheating us
No Baba
Telling Lies
No Baba
Open your Balance Sheet
Ha Ha Ha!

 

[Sunil]

(got this message on Y IM - can't comment on its authencity)

How Satyam managed to prop up Bank FD in its Balance Sheet:

The Company had put an FD with bank A initially for 5 years for say Rs. 100. Then Company applied for the duplicate FD certificate saying they lost the original and did the prematured withdrawal after 3 months ? Rs 102 (including interest) using the duplicate FD certificates.Then on the next day Rs. 102 for 5 years was put as an FD with Bank B.

Following the same modus operandi, he put the FD with Bank C,D &E. Then at the end of the year he shows the original FD certificates of Banks A, B, C, D & E to the auditors.

Auditors did not get the bank confirmation from the banks A to E regarding these FDs. The Company merrily carried on with the practice over 10 years and so. That's how the cash and bank balance and accrued interest are overstated.

Issue here is verification of the Bank.