45-410: Maytas (" Satyam " read backwards) was a group of companies founded by B. Ramalinga Raju . It included Maytas Properties and Maytas Infra Limited. Maytas Properties is a property development company founded in 2009. It was run by B. Ramalinga Raju. In January 2009, Raju resigned as chairman admitting to a massive fraud in the company. Raju was arrested on the same day and later imprisoned. Subsequently,
90-516: A major stake in the company and in June 2009 the company renamed itself Mahindra Satyam. Mahindra Satyam merged with Tech Mahindra on 24 June 2013. Satyam Computer Services was founded in 1987 and by 2008 earned revenues of over $ 2 billion, employing 52,000 IT professionals across the world. It was one of India's five top IT companies, and focused on the enterprise segment. It had an extensive client list including 185 Fortune 500 companies. The company
135-745: A majority stake in April 2009, and the company was rebranded as Mahindra Satyam in June 2009. Tech Mahindra announced its plan to merge with Mahindra Satyam on 21 March 2012, after the boards of both companies gave their approval. The Bombay Stock Exchange, the National Stock Exchange, and the Competition Commission of India (CCI) also approved. Shareholders unanimously approved the move in January 2013. The merger ran into delays due to ambiguity over jurisdiction between investigating agencies and
180-452: A marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years ... It has attained unmanageable proportions as the size of the company operations grew significantly". In 2015, Raju was sentenced to seven years in jail and fined about $ 800,000. OTC Markets Group OTC Markets Group, Inc. (formerly known as National Quotation Bureau , Pink Sheets , and Pink OTC Markets )
225-586: A network of 89 broker-dealers price and trade a wide spectrum of securities on the OTC Markets platform. To be quoted on the platform, companies are not required to file with the SEC , although many choose to do so. A wide range of companies are quoted on OTC Markets, including firmly established foreign firms, mostly through American depositary receipts (ADRs). In addition, many closely held, extremely small and thinly traded U.S. companies have their primary trading on
270-408: A qualitative review by OTC Markets Group. Companies are not required to be registered with or reporting to the SEC, but they must post financial information with OTC Markets Group. In addition, U.S. companies must be ongoing operations (i.e., no shells ) and may not be in bankruptcy, while foreign issuers must meet the requirements of qualified foreign exchanges. Additional oversight of OTCQX securities
315-613: A spam campaign, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com. The SEC requires broker-dealers to comply with Exchange Act Rule 15c2-11 before displaying quotes on OTC securities, and requires submission of Form 211 to the FINRA OTC Compliance Unit. In 2019, amendments were proposed to 15c2-11, which had not been significantly amended since 1991. FINRA Rule 6500 contains rules on quoting OTC securities on
360-539: A turnover of US$ 2.7 billion. Mahindra Satyam shareholders received two shares of Tech Mahindra stock for every 17 shares of Mahindra Satyam stock they owned. Shares in the new entity began trading on 12 July 2013. On 24 July 2013, a division bench of Andhra Pradesh High Court admitted a petition filed by Ekadanta Greenfields and Saptaswara Agro Farms challenging the Mahindra Satyam-Tech Mahindra merger order. The two firms argued that their objections to
405-410: Is "Satyam" reversed) and were owned by Raju's sons. This eventually led to a review of the deal by the government, and a veiled criticism by the then Vice President of India Hamid Ansari . Several of Satyam's clients responded by re-evaluating their relationship with the company. Satyam's investors lost about ₹ 3,300 crore (equivalent to ₹ 92 billion or US$ 1.1 billion in 2023) in
450-735: Is also called OTOTC or Other OTC. As of October 18, 2023 , there were 1,426 securities in the grey market. The Compliance Analytics Product creates a security specific risk score for all OTCQX, OTCQB, Pink and Grey securities. Risk is assessed over 19 parameters including caveat emptor, shell status, penny stock status, price/volume changes and stock promotion data. Recently, the product integrated "Hot Sector" information about cannabis, cryptocurrency and blockchain. The Promotion Data Product provides market professionals and investors with active and historical promotion data for OTCQX, OTCQB, Pink and Grey securities. The company calculates and licenses indices of securities that trade on one of
495-466: Is an American financial services corporation that operates a financial market providing price and liquidity information for almost 12,400 over-the-counter (OTC) securities. The group has its headquarters in New York City . OTC-traded securities are organized into three markets to inform investors of opportunities and risks: OTCQX , OTCQB and Pink . The company was first established in 1913 as
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#1732876636207540-785: Is an annual fee for the OTCQB market of $ 12,000 per year and a one-time $ 2,500 application fee. As of October 18, 2023 , 1,216 securities were available for trading on the OTCQB exchange. As of November 2018, the OTCQX Market has Blue Sky status in 33 states and the OTCQB Market in 30 states. Blue sky laws are state regulations established as safeguards for investors against securities fraud. The laws, which may vary by state, typically require sellers of new issues to register their offerings and provide financial details. This allows investors to base their judgments on verifiable information. Since
585-498: Is in its penultimate phase, will open a new chapter for the company. We thank all stakeholders for supporting us during this crucial phase". Before the asset inflation scandal hit, the Income Tax Department had issued notices to the company seeking ₹ 6.17 billion tax, for the assessment years from 2003–04 to 2008–09 after disallowing exemptions claimed by the software firm. The Central Board of Direct Taxes attached
630-514: Is more information about a company's ownership structure, professional advisors and service providers. This certification will be required for any security newly qualified to be publicly quoted by a broker-dealer under SEC Rule 15c2-11, or when a Pink traded company becomes a current SEC reporting company, beginning May 1, 2014. International Reporting companies are also allowed to upgrade from Pink to OTCQB if they publish their 12g3-2(b) compliant disclosure online and verify their company profile. There
675-496: Is provided by requiring every issuer to be sponsored by approved third-party investment banks or law firms , called OTCQX Sponsors. As of October 18, 2023 , 658 securities were available for trading on the OTCQX exchange, 478 of these being international companies and 180 of these being U.S. companies. The OTCQB market contains a one penny ($ 0.01) bid price requirement "intended to remove companies that are most likely to be
720-732: The National Quotation Bureau (NQB). For decades, the NQB reported quotations for both stocks and bonds, publishing the quotations in the paper-based Pink Sheets and Yellow Sheets respectively. The publications were named for the color of paper on which they were printed. NQB was owned by CCH from 1963 to 1993. In September 1999, the NQB introduced the real-time Electronic Quotation Service. The National Quotation Bureau changed its name to Pink Sheets LLC in 2000 and subsequently to Pink OTC Markets in 2008. The company eventually changed to its current name, OTC Markets Group , in 2010. Currently,
765-676: The Company Law Board allowed IL&FS to acquire the company in 2011. In August 2013, the name of Maytas Property Limited (MPL) was changed to Hill County Properties Limited (HCPL). Maytas Infra is an infrastructure development, construction and project management company. It was originally run by Satyam Computer Services founder B Ramalinga Raju. Various agencies, including the state Crime Investigation Department, probed Maytas after Raju admitted to serious financial misdeeds at Satyam Computer. Allegations emerged that funds from Satyam were diverted to Maytas, causing government agencies to audit
810-521: The OTC Markets platform. Many foreign issuers adhere to the listing requirements of qualified foreign stock exchanges and make their home country disclosure available in English. There are also a significant number of U.S.-based issuers who are current in their reporting to regulators such as the U.S. Securities and Exchange Commission (SEC) or make available ongoing quarterly and audited annual financial reports through OTC Markets Group. Many companies in
855-460: The OTCBB, but the OTCBB has diminished in importance and by 2016 less than 2% of OTC trades occurred on the OTCBB, as opposed to OTC Markets. In 2014, FINRA proposed to remove Rule 6500 and eliminate the OTCBB, but withdrew the rule and in 2016 proposed to update the OTCBB to provide a backup system in case quotation is disrupted or nonexistent. Other FINRA rules such as Rule 6432 and Rule 5250 relate to
900-600: The OTCQX and OTCQB therefore are of Status to meet or exceed the Blue Sky standards of the respective states. Pink is an open market that has low financial standards or reporting requirements. The stock of companies in the Pink tier are not required to be registered with the SEC. Companies in this category are further categorized by the level and timeliness of information they provide to investors and may have current or limited public disclosure. These were both glamorized and denigrated in
945-575: The Pink market tier of the OTC categorization system do not meet the United States' listing requirements for trading on a stock exchange such as the New York Stock Exchange or NASDAQ . Many of these issuers do not file periodic reports or make available audited financial statements , making it very difficult for investors to find reliable, unbiased information about those companies. For these reasons
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#1732876636207990-614: The SEC Rule 15c2-11; for example, Rule 5250 prohibits market makers from receiving compensation from issuers. Many of the stocks traded OTC are microcap stocks , also known as penny stocks , which are known for fraudulent microcap stock fraud and penny stock scams . After the passage of Sarbanes-Oxley Act in 2002, some companies delisted and became OTC to save costs and avoid certain regulations, although OTC companies have faced pressure to improve disclosure. The OTC Bulletin Board (OTCBB)
1035-444: The SEC for the purpose of determining the public market price when registering securities for resale with the SEC in equity line financings. OTC Markets Group can facilitate electronic trading with its SEC-registered Alternative Trading System known as OTC Link ATS. The OTCQX market includes both multinational companies seeking access to U.S. investors, and domestic growth companies. To be traded on this tier, companies must undergo
1080-501: The SEC recognized OTCQX and OTCQB as established public markets, OTC Markets Group has worked collaboratively with state regulators since the 2014 JOBS ACT to apprise them of the easily accessible, free, public online disclosure of current information provided by companies traded on the OTCQX and OTCQB premium markets. As of April 2018, 60% of the 50 states now acknowledge the OTCQX Market for the purposes of secondary trading exemptions. The investor protection and quality control standards of
1125-542: The SEC views many of the lower-tier companies traded on OTC Markets as "among the most risky investments " and advises potential investors to heavily research the companies in which they plan to invest. Securities trading on the OTCQB and higher-tiered OTCQX trading marketplaces have status of Blue Sky secondary trading exemptions in 33 states and brokers may recommend such securities to their clients like securities listed on national stock exchanges. OTC Markets Group designates securities in one of three markets to indicate
1170-695: The Satyam scandal, Maytas stock slumped to a 52-week low on 9 January 2009. Citizens for a Better Public Transport in Hyderabad (CBPTH) demanded a CBI inquiry into Maytas' victory in the Hyderabad Metro Rail project. CBPTH convener C Ramachandraiah alleged that the state government had been favouring Maytas for infrastructure projects. The Economic Times reported that the Andhra Pradesh government had paid Rs.1,800 crore to Maytas Infra towards works under
1215-484: The film The Wolf of Wall Street . Companies submitting regular Quarterly and Annual Reports go into the Current category. This category can still include shell companies or development stage companies with little or no operations as well as companies without audited financial statements . Companies in this category must not only have Quarterly reports duly posted every three months, but most have Annual reports for at least
1260-587: The government, and two tax cases totaling over ₹ 27 billion. On 11 June 2013 Andhra Pradesh High Court approved the merger, after the Bombay high court gave its approval. A new management structure was announced for the new entity, led by Anand Mahindra as Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnani as the CEO and Managing Director. The merger was announced to be complete on 25 June 2013, creating India's fifth largest software services company with
1305-654: The group on the Rs 12,132-crore Hyderabad Metro Rail project. On 21 July 2009, a case was registered against the promoters of the company by the Hyderabad police under Section 406 (breach of trust) and Section 420 (cheating) of the Indian Penal Code . In January 2011, The Company Law Board allowed IL&FS to acquire a controlling stake in Maytas Properties. IL&FS acquired 80% of the equity in Maytas Properties (MPL), as per
1350-564: The infrastructure company's records as well. Maytas Infra requested an extension for reporting its quarterly results due to these investigations. In August 2009, IL&FS replaced Raju as promoter of Maytas Infra. In August 2013, the name of Maytas Infra Limited (MIL) was changed to IL&FS Engineering and Construction Company Ltd (IL&FS ECC). In 2008, the Satyam board approved a US$ 1.6 billion acquisition of Maytas Infra ($ 300 million) and Maytas Properties ($ 1.3 billion). The acquisition attempt
1395-428: The irrigation department's Jalayagnam project. Irrigation minister Ponnala Lakshmaiah said that works totalling another Rs 11,000 crore had been sanctioned to Maytas Infra, since Y S Rajasekhara Reddy became chief minister in 2004. The Maytas Infra-led consortium failed to achieve financial closure and give a performance guarantee, the state government of Andhra Pradesh was forced to cancel the concession agreement with
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1440-748: The level of financial and corporate disclosure provided by the companies using its quotation system. Apart from the OTCQX market, which has rules that include financial requirements, the designations do not signify issuer quality or merit of any security. Designation is based on the level and timeliness of a company's disclosure and OTCQB and any of the Pink categories can include both high quality as well as speculative, distressed, or questionable companies. Strict promotion policies have been enacted to flag these companies and deny their application for trading if they engage actively in campaigns marked by misleading information or manipulative promotions. The OTCQX and OTCQB markets are considered 'Established Public Markets' by
1485-504: The merger had not been considered in full. After the scandal hit, the company's revenue collapsed and the new chairman, Vineet Nayyar , suggested that a turnaround would take three years. By the April–June quarter of 2011, the company was profitable once again. In 2013 Mahindra Satyam declared a 30% dividend. Nayyar commented "The turnaround of Mahindra Satyam is symbolically and practically complete. The merger (with Tech Mahindra), which
1530-450: The needs of automated broker-dealers. The OTCBB was shut down on November 8, 2021. Securities that are not listed on any stock exchange nor formally quoted on OTC Markets or OTCBB are considered to be in the grey market . Unsolicited transactions are processed independently and not centrally listed or quoted. Trades are reported to a self-regulatory organization (SRO), which then passes the data on to market data companies. The grey market
1575-723: The order issued by the CLB on Thursday. The group agreed to invest Rs 20 lakh at par increasing total paid-up capital to Rs 25 lakh. Maytas Properties experienced a severe liquidity crunch stalling many of its real estate projects, including the Hill county residential project in Hyderabad. Satyam Computer Services Mahindra Satyam (formerly Satyam Computer Services Limited ) was an Indian information technology (IT) services company based in Hyderabad , India , offering software development , system maintenance , packaged software integration and engineering design services. Satyam Computer Services
1620-875: The preceding two years on file. As of October 18, 2023 , there were 6,705 securities under Pink Current. Companies that have submitted information no older than six months to the OTC Markets data and news service or have made a filing on the SEC's EDGAR system in the previous six months are rated as having limited information. Companies that are unwilling or unable to meet OTC Markets' Guidelines for Providing Adequate Current Information with Quarterly and Annual Reports every three months, but which still submit information at least every six months, are in this category. These are often companies with financial reporting problems, economic distress, or in bankruptcy . As of October 18, 2023 , there were 3,684 securities under Pink Limited. This market indicates companies that are unwilling or unable to provide disclosure to
1665-647: The properties of Mahindra Satyam on 30 January 2012, after issuing notices to the company seeking payment of the tax. The Andhra Pradesh High Court stayed the order in February 2012. In December 2008, Satyam founder B. Ramalinga Raju made a final attempt to conceal his falsification of the Satyam Computer Services balance sheets by acquiring Maytas Infrastructure and Maytas Properties for $ 1.6 billion, despite concerns raised by independent directors. Both companies were founded by Raju's family members (Maytas
1710-536: The public markets. Companies in this category do not make current information available via OTC Markets disclosure and news service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as "dark" companies with questionable management and market disclosure practices. Securities of publicly traded companies that are not willing to provide information to investors are considered highly risky. Quotations for stocks in this tier are hidden from
1755-568: The public. This tier was formerly known as the Pink No Information tier. As of October 18, 2023 , there were 3,342 securities in the Expert Market. There is a public interest concern associated with the company designated as "Caveat Emptor" (Latin for "buyer beware"). This may include a spam campaign, stock promotion or known investigation of fraudulent activity committed by the company or through inside information . During
1800-502: The related panic selling , as Satyam's shares fell 55% on the New York Stock Exchange . Four members of the board of directors resigned on 29 December 2008. On 7 January 2009, Chairman Raju resigned after publicly announcing his involvement in a massive accounting fraud , in which he had inflated the company's cash assets by over $ 1 billion. In a letter to the Securities and Exchange Board of India , he explained that "what started as
1845-422: The subject of dilutive stock fraud schemes and promotions". Each company verifies via an annual OTCQB Certification, signed by the company CEO or CFO, that their company information is current, including information about a company's reporting status, company profile, information on management and boards, major shareholders, law firms , transfer agents , and IR / PR firms. Investor confidence improves when there
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1890-593: Was listed on the Pink Sheets , the National Stock Exchange and Bombay Stock Exchange and provided services to a wide range of customers including 185 Fortune 500 companies. In January 2009, the company's founder and chairman Ramalinga Raju admitted to inflating the company's assets by $ 1 billion, leading to criminal charges and a collapse of the company's stock price. This was known as Satyam Scandal . Mahindra Group 's IT arm, Tech Mahindra , purchased
1935-465: Was only a listing of securities that are also traded "over the counter" similar to the OTC Markets. The OTCBB has diminished in importance, with very little activity, but was previously retained as possible last resort system in case of disruption. OTCBB companies were required to file timely reports to a U.S. regulatory agency. Almost all OTCBB companies are now quoted via OTC Markets' OTC Link ATS because its fully electronic trading platform better meets
1980-508: Was seen as an attempt by the Raju family to exploit Satyam's cash resources, as the transaction would have left Satyam with debt of around $ 400m. After protests from the institutional shareholders, the deal was abandoned. In 2009, Raju resigned as Satyam CEO, admitting to an accounting fraud of 71 billion rupees. Raju stated that the aborted Maytas deal was actually a last attempt to "fill the fictitious assets with real ones". After Raju admitted to
2025-430: Was the subject of what was called India's biggest corporate scandal in January 2009 when then-chairman Byrraju Ramalinga Raju admitted in a letter to the Securities and Exchange Board of India that the corporate accounts had been falsified, adding approximately $ 1 billion to the company's cash and cash-related assets. The government appointed a board to oversee the sale of the company. Tech Mahindra offered to purchase
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