An emerging industrial super power India is at crossroads, after the disaster of Satyam’s undermining ,disgraceful move to shift 1.6 billion to its Mayatas projects.
The integrity is at question, the audacity is at question, the Board is at question,the transparency is at question,,and the investors interest are at question.
The Indian corporate scenario was stagnant till 1990.After liberalisation, this sector has changed. India with 20 million shareholders, is one of the largest emerging markets in terms of the market capitalisation.
The Confederation Of Indian Industry,took a special initiative to protect the small investor,and promote transparency within business and industry.
The Securities Board of India announced strict governance for public listed companies. More powers were entrusted to the Securities Board , after the Harshad Mehta scam in 1992.
Amendments were made in clause 49 to move Indian companies rapidly up the business scenario. Foreign Direct Investments were freely allowed.
Indian companies grew in stature. The Information Technology sector made a rapid stride. Indians made good of the opportunity, There was a large scale take over of overseas companies by Indian business.
The Jaguar deal is a fine instance of this elaborate agenda.
The Satyam episode has ploughed deep into the investor’s confidence, has ransacked the enthusiasm of the overseas financial institutions and has etched a black impression on the nascent corporate Indian culture