Satyam Scam – The biggest setback for Indian Corporates
The disclosure of the Satyam issue by its chairman B. Ramalinga Raju has put the Indian IT sector and the other corporates questionable. This shows the loopholes in Indian system. Anybody can cheat lay investors who has invested their hard earned money in the company shares. The stock market was going through a bad stage and such disclosures coming during this time will ruin the trust of the investors. The government and the concerned authorities needs to close the loopholes which are helping such devils to cheat poor investors.
The regulatory and controlling authorities, apart from the company’s auditors, have blatantly failed in performing their duty. The stakeholders of a company can no longer believe what is stated in the balance sheet. Investors are the worst hit in such circumstances. There should be regulatory authorities who should verify the balance sheets, assets and liabilities of all the Public limited companies and take all possible measures to make sure that the investors interests are taken care at least in the future. Such incidents will spoil the interest of International investors in Indian companies. What will happen to the 53 K employees of Satyam? Will the Government of the authorities responsible for this take care of them?