For me the most important factor that could drive a business up or down are the people who run the business. As we cannot really create a number to represent the quality of people in the business its very hard to appropriately attach a future value to the business. This is especially so with non - Blue chip stocks and retail segment who cannot have an up close peek in to the people in a business.
A great team of people can take an ordinary idea and turn it into a great business and a lousy team can take a wonderful idea and then crash the business. Its almost always about the people in business.
I consider SEBI equally responsible in this case.
When SEBI ordered forensic audit, they should have informed stock exchanges too about it. SEBI didn’t inform exchanges and company conveniently forgot to inform
I can understand promoters doing unethical things. What i still do not understand is what was the board or directors of erstwhile yes bank doing when rana kapoor was doing all the fraudulent things.
Aren’t these guys equally responsible for the downfall. Never saw any enquiry been done on the other members other than rana kapoor.
It is just not possible for one man to do fraud and bring down a bank. The board should be questioned as well.
I was listening to saurabh mukerjea of marcellus. It seems according to him there are only handful of companies who operate their business on a clean slate in India.
My real time experience was with vedanta, how this one man who held just 50.5 percent in a company tried to delist the same. The things the group did to downcast the financials. What is even more nauseatic is the way press still considers the promoter as one of the greats.
Glad got out of it without losses.
On one hand everyone says its a crime to put money in fixed deposit and equities is the only way out. But its a mine field out here.
If you follow money life there is always one broker licence getting cancelled by sebi