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English Audio Commentary for week of 10th Apr 06

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Emerging markets news

Dear Readers and Subscribers ,

Everyone is up against SATYAM.

The several television channels which were singing praise on SATYAM earlier are now crying aloud "FOUL".

There are so many rating agencies , analytical forum , bank board rooms ,ICAI , foreign / local financial institutions , market regulator bodies , stock exchanges - all of them are now mute and confused spectators not knowing what to do.

It is funny that even the state police cannot jump in to action because there is only a statement of self admitted guilt but no complaint in writing ! We do not think the matter can stoop down anything lower than this.

We also fear that we have heard only the tip of the ice berg. More skeletons must be in the cupboard and should come out soon once the "not chosen" board members and investigating teams get into some action mode.

The weekend looks important as several fresh disclosures may come out.

We fear more about other similar companies whose dirty linen may get washed so suddenly , more out of fear by the statutory auditors and lending agencies - who may have till now conveniently looked the "other way".

There is a very serious crisis of confidence. Fearing the worst we have of late been recommending you to be a short term trader , booking profits or losses regularly and avoiding any serious plus positions. Even that exercise may prove dubious and harmful if the Government does not act immediately and come out with facts.

No Minister worth his name has come out so far with any statement. No one wants to associate himself with this unholy mess.

Imagine as a trader you have to struggle to make Rs 7100 on a trading day. But someone casually admits to a massive fraud of Rs 7100 crores.

He has the audacity to claim that he has done nothing irregular for personal gain or profit. It will be the height of stupidity if we are all going to accept this and be witness to the battered company being managed by persons of "less than acceptable reputation".

We offer our deepest sympathies to the 53000 employees of SATYAM who may be driven to the steet.

There are several thousand crores of money in investors protection fund with SEBI / NSE and BSE. The whole fiasco is due to inability of these bodies to see the irregularities. So is there anything wrong to suggest that this fund should be used at least to compensate the small investors at a price at which teh lending banks silently sold of the shares pledged with tehm as collateral.

We will go one step further to suggest that sale transactions in recent times by Institutions and Banks (who were privvy to teh information) should be nullified. SEBI has a big job on hand and if not handled properly , India can forget any more foreign investment in its capital markets.

We can only wish you luck and share your burden mentally if you have lost money in SATYAM on your own volition.

Usually we say that the markets will bounce back overcoming such odds. But today we are scared to even dream of making such a statement till we know a lot more about SATYAM and its ASATYAM (untruthful) practices.

BaluBhai

Editor

www.balubhai.com

Friday

09012009

0830 AM

We hope better sense prevails and trading in SATYAM shares are halted today till some clarity emerges.

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