New Delhi: Ruling out a government takeover of Satyam Computer Services, Commerce and Industry Minister Kamal Nath on Wednesday said it is corporate India that must respond to the issue of governing business firms.
“The Government is not looking to take over the companies. The corporate world must respond to this...it is not that the Government should respond to this. The Government should look at only the regulatory part of it,” Nath told reporters.
He said the Satyam incident is an isolated case and would not damage the country’s image among global investors.
“I don’t think it will have any impact on (foreign investment). This is only one case. In the US, we have seen all the icons that had this problem. So this is very (small) compared to what we have seen in the US,” Nath said.
He said Indian firms have a track record of sound financial practices and accounting methods.
He said it was also a systemic issue and the country’s institutions and regulators are sound enough to address it.
Nath said since Satyam is a Nasdaq-listed firm, an inquiry by the US market regulator in the next couple of days could throw further light on the state of affairs in the firm.
However, there are issues to reflect on especially when Satyam had “auditors of international standards”, he said.