Satyam - introduction to series
Sandeep Parekh -
Thursday, January 08, 2009 10:04 AM
I'm going to run a series of pieces on Satyam - please ignore the series if you have had more than your fill of the issue. As more facts seep in, I will keep updating the series as new facts are unraveled, recall, there are very few facts in the public domain except a dubious confession letter.
First, the confession story doesn't add up. The facts don't really exhibit internal consistency. Something else is up.
Second, what should be done at this very moment by regulators (i.e. ad hoc and immediate as opposed to the longer investigations and recriminations).
What should regulators do - SEBI, exchanges, MCA, SFIO, Finance Ministry, Police, US-SEC, NYSE and the most important regulator of all - the shareholders.
Third, what are the provisions of law which could be used against a) Satyam b) Ramalinga Raju c) independent directors ca) audit committee d) auditors e) merchant bankers. And who will pay what in terms of money, industry bars and jail sentences.
Forth, which are all the types of action possible against these people and the limitations and at least vague time lines
Fifth, 10 questions to the audit committee.
Sixth, can we prevent this elsewhere and in the future?
While I pen this, listen to my podcast on the Satyam story till day before. This is my first podcast, so it is a bit experimental.
See also my piece in DNA Money today 'Confession to seek lower penalty'.
See also Joseph Leahy's piece in the Financial Times and Heather Timmon's piece in the New York Times to see the international coverage this has generated.