Monday, January 12, 2009

Is ‘Satyam’ An Isolated Case?

2 Eye-opener news -

India’s Bourses Have Hundreds of Satyams

There're hundreds of Satyams listed on the stock exchanges. Good coporate governance seems to be last in the priority list as over 1,200 companies listed on the Bombay Stock Exchange (^BSESN : 9156.31 -250.16) have yet again failed to comply with corporate governance norms for the quarter ended September 2008.

"In terms of Clause 49 of the Listing Agreement, 1,228 companies have not submitted corporate governance report," the BSE says. The exchange has been putting out almost the same number of companies in the list of those of violating Clause 49, quarter after quarter. The Indian Express had earlier reported about this menace but the exchanges and the regulator are yet to tackle the issue. (Link to the story)

Wipro Shares Tumble on World Bank Contract Ban

Shares in India's No 3 software company, Wipro Ltd (WIPRO.NS : 226.85 +-24.1) fell more than 12 percent on Monday after the outsourcer said the World Bank had barred the company from its direct contracts, citing a conflict of interest.

The decision, taken by the World Bank in June 2007 and effective until 2011, was being announced now under revised disclosure policies, Wipro said.

The World Bank said in a separate statement from Washington that the ban was for "improper benefits to bank staff". It had also earlier barred Satyam Computer Services (SATYAM.BO : 36.15 +12.3) for eight years.

(Link to the story)

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