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National Law Institute University Bhopal: A Project On

This document discusses a project submitted by Irishanand to Professor Padma Singh on analyzing the Satyam scam case and its impact on SEBI regulations. It begins with an acknowledgement thanking Professor Singh for guidance. It then reviews literature on the Satyam scam, including analysis of it as India's Enron and impacts on corporate governance. The statement of problem discusses the scam's impact on corporate governance and SEBI regulations. The objectives are to analyze factors responsible for the scam and its impact. The hypotheses are that the scam changed corporate governance discourse and strict actions were taken to stop future scams. The research questions analyze the scam case and effects on SEBI regulations. The introduction defines financial scams and discusses the Satyam

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Irisha Anand
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93 views5 pages

National Law Institute University Bhopal: A Project On

This document discusses a project submitted by Irishanand to Professor Padma Singh on analyzing the Satyam scam case and its impact on SEBI regulations. It begins with an acknowledgement thanking Professor Singh for guidance. It then reviews literature on the Satyam scam, including analysis of it as India's Enron and impacts on corporate governance. The statement of problem discusses the scam's impact on corporate governance and SEBI regulations. The objectives are to analyze factors responsible for the scam and its impact. The hypotheses are that the scam changed corporate governance discourse and strict actions were taken to stop future scams. The research questions analyze the scam case and effects on SEBI regulations. The introduction defines financial scams and discusses the Satyam

Uploaded by

Irisha Anand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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NATIONAL LAW INSTITUTE UNIVERSITY

BHOPAL

PROJECT ON

“ANALYSIS OF SATYAM SCAM CASE AND IT’S IMPACT ON SEBI


REGULATIONS THEREAFTER”

IX TRIMESTER

SUBMITTED TO: SUBMITTED BY:

ASS.PROF. PADMA SINGH MAM IRISHANAND

2017BALLB40
Acknowledgement
The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely fortunate to have got this all along the completion of my
synopsis work. Whatever I have done is only due to such guidance and assistance and I
would not forget to thank them.

I respect and thank my professor Padma singh mam for giving me an opportunity to do the
project work on “ Analysis of Satyam scam case and its impact on SEBI regulations
thereafter” and providing me all support and guidance which made me complete the project
on time. I am extremely grateful to her for providing such a nice support and guidance though
she had busy schedule managing for completion of my project.

I am thankful to and fortunate enough to get constant encouragement, support and guidance
from my mother who helped me in successfully completing my project work.

Thank You

Irisha Anand
LITERATURE REVIEW

Corporate accounting scandal at satyam: a case study of india’s enron Dr. Madan Bhasin
:The accounting fraud committed by the founders of Satyam in 2009 is a testament to the fact
that “the science of conduct is swayed in large by human greed, ambition, and hunger for
power, money, fame and glory.” Scandals have proved that “there is an urgent need for good
conduct based on strong corporate governance, ethics and accounting & auditing standards.”
Unlike Enron, which sank due to ‘agency’ problem, Satyam was brought to its knee due to
‘tunnelling’ effect. The Satyam scandal highlights the importance of securities laws and CG
in emerging markets. Indeed, Satyam fraud “spurred the government of India to tighten the
CG norms to prevent recurrence of similar frauds in future.” Thus, major financial reporting
frauds need to be studied for ‘lessons-learned’ and ‘strategies-to-follow’ to reduce the
incidents of such frauds in the future. The increasing rate of white-collar crimes “demands
stiff penalties, exemplary punishments, and effective enforcement of law with the right
spirit.”

The Satyam Saga :Bhupesh Bhandari, Prashanth Chintala, Vandana Gombar, Lalitha
Jishnu, Shyamal Majumdar and Anand Pandey (2009). Business Standard Limited., ISBN:
8190573578.: This book is the first compilation of published as well as inside information of
Satyam and the scam. It is divided into ten parts with explanations from different
perspectives behind the scam. It is authored by a team of six people including the Editors and
the Chief of Bureau from Business Standard. The authors have not taken any stance
anywhere in the book. They have only provided the picture about what went wrong, what was
the environment, who was collectively responsible for the same, who should have saved the
situation and the background where the symptoms were visible

Ahmad, Tabrez and Tabrez, Malawat and Kochar, Yashovardhan and Roy, Ayan, Satyam
Scam in the Contemporary Corporate World: A Case Study in Indian Perspective (August 23,
2009). IUP Journal, 2010: This article talks about Satyam scam from Indian perspective
which has been the greatest scam in the history of corporate world of the India. The CEO of
the company Ramlinga Raju has made a scam of around $2 billion. There has been a lot of
controversy regarding the misuse of the post by the CEO of the company. The fake number
of jobs which was shown by the CEO was an abuse of power and how it was a clear violation
of the prevailing laws in India. The role of an incorporated company to satisfy desires of
investors, and to channelize their investment. But most of the time entrepreneur’s play with
money of the investors. There are laws to safeguards investors’ interest but how the Satyam
scam has raised the question on the fundamental role of the government and corporate
governance.

STATEMENT OF PROBLEM

 What impact did the Satyam scam had on the corporate governance in India .
 What impact did the case had on the SEBI regulations thereafter.

OBJECTIVE OF STUDY

 To analyse the satyam scam case from the establishment of the company.
 To understand what were the factors collectively responsible for such a scam and the
environment it prevailed in .
 To understand the impact this scam had on SEBI regulation.

HYPOTHESIS

 The Satyam scam case has changed the discourse of corporate governance.
 Strict action has been taken so as to set an example to stop these scams in future if
yes , does it had a severe impact or the cases has increased instead.

RESEARCH QUESTION

 Analysis of the Satyam scam case , the factors collectively responsible for such scam
 What effect does this case had on SEBI regulations .
INTRODUCTION

THE SATYAM SCAM: THE BIGGEST FINANCIAL SCAM

FINANCIAL SCAM

Financial scams can be broadly defined as an intentional act of deception involving financial
transactions for the purpose of personal gain, scam is a crime and is also a civil violation.
Many scam cases involve complicated financial transactions conducted by ‘White Collar
Criminals’ such as business professionals with specialized knowledge and criminal intent .

An unscrupulous investment broker may present clients with an opportunity to purchase


shares in precious metal repositories. Scamssters can contact their potential victims through
various methods which include face to face interaction , by post , phone calls ,emails etc.

The difficulty of checking identities and legitimacy of individuals and companies is due to
the ease with which scamsters could divert visitors to dummy sites and steal personal

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