Satyam joins a growing Dubious List of Self Serving Promoters that include Lok Housing,Sterlite and Jaiprakash

My Blog has this Tag Line on the Home page

” In India,Companies may fall Sick,but Promoters rarely do !”

How do we get Retail Investors to come back into our Stock Markets  when we have self serving Promoters running Riot with Shareholders Funds !

Satyam joins this growing list of Companies where Promoters take for granted all shareholders and are purely self serving…Check out earlier Blogs today for their blatantly immoral and outright unethical decsion that Satyam would buy out Promoter stakes in Maytas Companies

Markets have been truly unforgiving to such Companies…..Gandhis of Lok Housing,Gaurs of Jaiprakash Group,Agarwals of Vedanta Sterlite Group have all felt the ire of Shareholders for self serving decisions taken by them that violate norms of Corporate Governance…Their Share Prices have collapsed this year from 60 % to 95 %….Shareholders have thrown out their holdings after losing trust in Promoters

Rajus of Satyam too are on track to face such a calamity even though they have reversed this controversial decision overnight…The Trust is gone overnight too !…From Rs 225 yesterday,Satyam has crashed over 25% to levels of Rs 165

Another Danger is that even existing clients that Satyam Serves will not trust this Company and it’s Promoters easily again…The Impact of this could be severe loss of Business and Growth Prospects…New Clients will not be forthcoming

Also Employees will move away,being demoralised and demotivated by such unethical behaviour from the Promoters

So we should see an immediate exodus of Shareholders first followed by Employees and Clients in Satyam