Satyam Removed from Nifty

Satyam is Removed from Nifty, Its price is seen at a level of 10. Keep on Reading about what happened.

It was one of the darkest days in history of corporate India. Early this morning, B Ramalinga Raju — the founder of Satyam Computers, one of India’s largest IT companies — dropped a bombshell when he sent a five-page letter to the stock exchanges confessing to one of the biggest frauds ever seen.

Satyam had nothing by way of a balance sheet and it had been cooking its books for the last many quarters, fabricating lies for the benefit of all its shareholders, for its independent directors and other directors and perpetrating a lie that went through for several years before he chose to confess this morning.

The result: the Satyam stock lost 75% of its market cap, a huge collateral damage took place across the market that tanked 750 points raising a lot of apprehensions about how the world would see it both for the IT services sector, the Indian corporate sector and its standards of governance and also to how FIIs would react to such an episode.