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NYSE halts trading in Satyam shares

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CIOL Bureau
New Update

WASHINGTON, USA: Neck deep in troubles, Satyam Computer Services, got another shock when the New York Stock Exchange halted trading in Satyam Computer at its bourses in the US as well as Amsterdam in Europe on Wednesday, after chairman Ramalinga Raju's disclosure about financial bungling at the company.

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"Yes, the stock is halted in New York and Amsterdam,” PTI quoted a spokesperson for NYSE Euronext as saying.

To add to the woes, the company also faces two class action law suits against it in a New York court.

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The first suit has been filed by a US law firm of Izard Nobel LLP in the District Court for the Southern District of New York, on behalf of those who purchased the Indian company's American Depository Receipts over the last five years.

The second one is filed by Vianale & Vianale LLP.

Meanwhile, the decision of India's National Stock Exchange to remove Satyam from its benchmark index Nifty, came as another blow to the beleaguered IT major.  Now, Satyam will be replaced by Reliance Capital with effect from,  said an official statement from NSE.

Satyam would also be removed from various other indices like CNX 100, S&P CNX 500,CNX IT and the CNX Services sector index, the NSE statement said.

The suits allege that Satyam and its top executives violated federal securities laws by issuing materially false and misleading financial statements.

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