Conspicuous by their silence in the Satyam saga

Posted: January 10, 2009 in Uncategorized
Tags: , , ,

The story of Ramalinga Raju’s admission to big time fraud generated massive reactions all across. Especially from within the industry. Some downright angry, others more studied, some sarcastic, some a little more generous.

We heard from the likes of Kumarmangalam Birla, Anand Mahindra, K. V. Kamath, Deepak Parekh, Narayam Murthy, scores of eminent financial analysts.

But conspicuous by their silence were India’s largest private sector head honchos, the Ambani brothers!! Was it a case of “those who live in glass houses cannot throw stones”?? When the biggest of corporate scams has occured, when the markets are getting tanked, investor confidence dips to an all time low, ordinarily, as India’s largest private sector corporations, would it have not merited a statement from them?

Interestingly, there is another analysis of the behaviour of the markets, on January 7th, after the Satyam news broke.

On that day, 13 Tata companies did better than the index, while 6 did worse.

All 3 Mukesh Ambani companies and all 6 Anil Ambani companies did worse than the index.

Real estate companies Unitech and DLF also did worse than the index.

Is there a message that the market was giving? In regards to corporate governance, on the day when that was the biggest reason for the freefall? Maybe, just maybe.. ?!

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