With the fraud at Satyam dominating news it is difficult not to comment on this sordid affair. The fraud’s gargantuan proportions, its diabolical nature and the underlying greed, all under a thick cover of respectability has seriously dented the image of corporate India.
While the experts dissect the details of how a fraud of such massive proportions was so successfully carried out for years with no one any the wiser, ordinary investors who as always will suffer the most must ask questions not only from the iconic Ramalinga Raju, but from many others as well.
SEBI, the so called watchdog has been caught napping. In the aftermath of the scam one must ask what kind of a watchdog is SEBI. How did Satyam systematically, quarter on quarter, report huge revenues and profits and nobody smelt a rat. How come no one noticed its bulging accounts receivables, which now appear to be fictitious. Shouldn’t SEBI be held accountable for serious lapses amounting to dereliction of duty? Continue reading