Five key takeaways from the Satyam Saga

Six years after he made a dramatic confession of committing fraud to the tune of Rs 7,136 crore, Satyam's founder B. Ramalinga Raju has been sentenced to a seven-year jail term and levied a Rs 5-crore fine.

Several of his co-conspirators have also been handed out similar jail terms.

For many observers, analysts and shareholders, the verdict of the court may have been disappointing, and Raju as well as his co-accused have the option to appeal to a higher court.

While the Rs 14,000 crore lost in investor wealth in the Satyam saga may never be recouped, today's verdict proves that there are at least some positive takeaways -

 

1. What the Satyam saga also ensured is that it has become much harder to nominate your golfing buddy as a director of your public company. It also brought upfront what a board can do in ensuring good corporate governance practices. Diversity in the boardroom and not just people lending their names has meant sharper scrutiny of managements.