satyam saga

The stunning revelation by satyam about incidence of cooked up data in its balance sheets has taken each proud indian by surprise.This has reignited the importance of ethics in corporate governance. Moreover,This fiasco has brought shame to IT industry of india and may adversely impact the credibility of statements regarding the performance of indian companies. Foreign instutional investors may get discouraged from investing in india at least in short term. This story has compounded the misery of the indians having already suffered from the recent global meltdown.
Any listed company is supposed to follow corporate governance of highest standards as most of the capital comes from general shareholders other than promoters. Its the faith of the people in corporate governance that makes the system of equity finance possible. This episode may drive common men to stay away from capital markets. However, all is not lost. This problem may be seen as an oppertunity to make the provisions of corporate governance with no loopholes. We can only hope that such incidents dont get repeated in the future.