Never hold even a single stock when a fraud was broken out in a Company. Exit immediately even with big losses. That's why Swiss Finance exited from Satyam with Rs 500 crore losses. that's why Aberdeen exited with more than Rs 1,000 crore losses (estimates).
ICICI Bank has no exposure to Satyam. LIC has around 5% stake. LIC may lose more than Rs 1,500 crore in Satyam Computers (estimates). I don't know at what price LIC bought Satyam Computers. Even a lay man knew IT is a bad sector even for next 2 years. I don't know LIC rationale to have such a large stake in an IT company even before this scam.
Who are managing LIC equities? They does not even known basic ethics and rules about stock markets.
CAclubindia
