Heard on the Street
The government may well pat itself for appointing persons with solid market standing on the board of fraud-hit Satyam Computers, but market players are not impressed.
By ET Bureau |
Players feel left out at Satyam board
The government may well pat itself for appointing persons with solid market standing on the board of fraud-hit Satyam Computers, but market players are not impressed. They feel that shareholders with a sizeable stake in the company should also have been given a chance to represent themselves.
The buzz in the market is that the government is trying to be ���politically correct��� rather than genuinely trying to address shareholder concerns, many of who have been invested in the company for years. Interestingly, it is said that some of the foreign shareholders were miffed due to this and sold almost their entire stake post the board���s expansion.
The three new board members of Satyam are former ICAI president TN Manoharan, CII���s Tarun Das and LIC���s S Balakrishnan. HDFC chairman Deepak Parekh, former Nasscom president Kiran Karnik and ex-Sebi member C Achuthan are already on the board. Shares of the software company gained Rs 4.15 to close at Rs 24.45. A total of 6.15 crore shares changed hands on BSE. Meanwhile, on NSE, more than 11 crore shares were traded even as less than 20% resulted in actual delivery.
���Concerned��� broking cos may downgrade stocks
Call it the Satyam effect. But you could be seeing more equity downgrades by broking firms in the coming days. And the reason could not have to do with earnings alone. Already a few broking houses have been citing balance sheet and corporate governance issues as well while reversing their stance from buy to sell. The question to be asked is: weren���t these concerns already there for everyone to see during a bull run?
The government may well pat itself for appointing persons with solid market standing on the board of fraud-hit Satyam Computers, but market players are not impressed. They feel that shareholders with a sizeable stake in the company should also have been given a chance to represent themselves.
The buzz in the market is that the government is trying to be ���politically correct��� rather than genuinely trying to address shareholder concerns, many of who have been invested in the company for years. Interestingly, it is said that some of the foreign shareholders were miffed due to this and sold almost their entire stake post the board���s expansion.
The three new board members of Satyam are former ICAI president TN Manoharan, CII���s Tarun Das and LIC���s S Balakrishnan. HDFC chairman Deepak Parekh, former Nasscom president Kiran Karnik and ex-Sebi member C Achuthan are already on the board. Shares of the software company gained Rs 4.15 to close at Rs 24.45. A total of 6.15 crore shares changed hands on BSE. Meanwhile, on NSE, more than 11 crore shares were traded even as less than 20% resulted in actual delivery.
���Concerned��� broking cos may downgrade stocks
Call it the Satyam effect. But you could be seeing more equity downgrades by broking firms in the coming days. And the reason could not have to do with earnings alone. Already a few broking houses have been citing balance sheet and corporate governance issues as well while reversing their stance from buy to sell. The question to be asked is: weren���t these concerns already there for everyone to see during a bull run?
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Contributed by Ashish RukhaiyarToo busy to trade in stocks? Invest in Mutual Funds with ET Money!
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