Nasscom may ban Satyam from its membership

National Association of Software and service (Nasscom) can look at a ban on satyam Computer Services from its membership. This comes in the wake of satyam creator and chairman B Ramalinga Raju procedure that the company makes unauthorized use of its accounting for several years.

The complete event came to us a upset for us. too this type of failure is a sole one in the history of Nasscom. We look at the question of what steps can be taken. Given the scope and penalty of the incident, we can also think proscription it from Nasscom,''said Ganesh Natarajan, chairman of Nasscom.

Mr.B Ramalinga Raju

The government said he would take essential steps to make stronger corporate governance structure for Indian companies. In fact, Ramalinga Raju had served as chairman of Nasscom in 2006-07.

According to Natarajan currently the most important for the industry body is to restore investor confidence in analyst and worked for the Indian IT sector.  Considering that satyam employs over 50,000 people, it is important for us to protect the interests of the employees. We must ensure that they are not affected in the wake of a possible takeover of the company in the future. In addition, we also need to ensure that clientele have not suffered, he said.

Nasscom may also take up conversations with customers and investors abroad to allay their fears on the Indian IT sector. This type of event can also send the wrong signals to investors and clientele abroad. But we consider that the entire IT sector will not be exaggerated much as we regard this as a special case of a exacting company, he said. Satyam problems came to haunt the IT developed, while it is already reeling under the global economic slow down. Problems also arise as the U.S. entered welcome new Democratic president. With the United States accounts for over 60% of Indian IT revenues, this type of error can not go down well with possible clientele and the government present.