Thursday 29 January 2009

Views on Satyam

Views on Satyam

Am sure that all of you would have heard tons of stuff on Satyam.

Let me add my two-bit to the boring stuff on Satyam:

  • If L & T has been claiming in the media that it knows more than "ordinary investors", SEBI ought to take a look at the same from an insider trading angle
  • All this talk about open offer at revised (read, lower) price is just humbug - Most takeover vultures are looking for immunity from class action suits. The only reason why the price of Satyam is at current levels is due to the threat of class action suits. Please tell the vultures that they can't have their carcass and eat it too!
  • Employee strength - It is amusing to note that all employees have supposedly been sent emails asking them to confirm their identity. A simpler task in this day and age will be to send communication to all the bankers where the salaries are being sent to re-check the KYC norms and confirm the identity of the Satyam employee before sending the salary for January 2009 to those individual accounts. Independent verification can also be done by a simple process of each boss at every level all across Satyam giving a list of his/her direct reports along with name, designation, employment numbers, etc. and do a quick cross-check. A third checking mechanism could be to get a list of persons working on each project with each client directly from the client, to which the bench strength can be added. People on the bench can be asked to assemble in person to their respective offices on a pre-determined date and time to do a physical check.
  • What's preventing the authorities from seeking immediate punishments for those offences to which Raju has already admitted in his now infamous letter, while retaining the right to take the investigation process to its logical conclusion?
  • Why can't the authorities be asked to "break the corporate veil" under the Companies Act so as to ring-fence the liabilities by making the promoters personally liable while allowing the rest of the company to continue to operate under the directions of the new board?

More of it from time to time, if time permits!

Regards,

N


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