One question that does not seems to have been fully answered in the last few months is whether the Satyam episode is truly an aberration or whether it is just the tip of the iceberg (thereby signalling a systemic problem generally in several Indian companies). The Economic Times has an interesting report on various types of frauds that are practised in Indian companies and the role of various...
Further Spill-Over Effects Of Satyam
An article in today’s Business Standard mentions the renewed interest the Income Tax Department is taking the compliance of Chartered Accountants with their due diligence obligations. In the case of transactions involving remission of money outside India, the Income Tax Act permits the production of a certificate from the CA stating that the transaction is not taxable in India, as a basis for...
The “Madoff Scheme” and Failure of Regulation
The expression “Ponzi scheme” is not something we are terribly familiar with in India. To be honest, I heard of this concept only a couple of years ago. But now, these words are resonating in the media after the alleged fraud by Bernard Madoff came to light last week. New York Times’ City Room Blog has some background about Charles Ponzi: ““He had his nose pressed against the glass,” Mr. Zuckoff...
Libido can’t dilute Spitzer’s contribution to clean markets
Some sections of Wall Street are in celebration mode. Others are deeply disappointed. Eliot Spitzer, governor of New York, once the fire-spitting crusader attorney general of the State of New York, who had cleaned up the capital market with his incisive prosecution of questionable practices on Wall Street, has owned up to having availed of the services of a high-premium prostitution ring. Spitzer...
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