Tuesday, December 16, 2008

Satyam Lesson

So hopefully Indian promoters and business families will learn hard lessons from the Satyam Fiasco. Satyam chief thought that he could pull off the standard, corrupt ways of ‘Desi family business’ – to use public money to promote shell companies of kith and kin. Satyam ADR on NSYE dropped around 50% in one hour and the company lost around $2 Billion market cap in a blink of eye along with credibility. What a timing also – with Madoff down fall raging on Wall Street; such mendacity is bound to pull Indian companies and those who intend to ignore basic corporate governance.

1 comment:

Anonymous said...

Indian companies, by & large, are yet to learn lot of the basics of corporate governance. We still enjoy lot of protections. We are extremely slow in adapting the changes. We still believe in "Chalata Hai ! We do not want to improve upon. More next time.