In one way, Raju's Satyam fraud is similar to 26/11 Mumbai attack. Both has woken up our eyes to Frauds and Terrorism. Till recently the Government and the Regulators had not idea how bad Fraud and Terrorism could affect our economy. But after 26/11 and Rajus Satyam Fraud, the Govt. and the Regulators have woken up to the possibility of more such Terror attacks and Frauds and taking preventve measures to stop such things. This is the positive fallout of 26/11 and Raju's Fraud. The Goverment is setting up NIA and also planning NSG hubs in various places and allocated more budget for beefing up security measures. Similarly, provisions about Corporate Governance in the Companies Amendment Act is being revisited.SEBI will also bring changes to the Listing Agreement along with amendments to roles and responsibilities of Independen Directors. I am sure that a few more Satyam's are still out there and we dont know when they will get exposed. Satyam is only a tip of the iceberg. SEBI has clearly disregarded the warnings given several years ago regarding irregularaties at Satyam due to political pressure.
May be we should set up a Regulator to regulate the Regulators !
CAclubindia
