NeilX

Three Investor Lessons from the Satyam Scandal

India is one of the most corrupt country in the world and the businessmen in India are as corrupt as their politicians barring few. On top of that many large corporate houses are family owned enterprises where nepotism is rampant.

Check this article: www.thehindubusinessli.... Quote "The idea of separation of ownership and management that is an essential feature of the corporate form of organisation has never seriously appealed to Indian businessmen. The Indian listed company has been, for the most part, a glorified family enterprise that tolerated outside investors at best and looted them in the worst case. Companies such as Infosys are rare exceptions to this rule.".

One another thing that I don't like about Indian companies is congolomerate model - many large companies want to be in all businesses.