The irregularities I mentioned in the earlier post were:
1) The split decision was taken without taking the 4 important stake holders into confidence: the regulators, the creditors, the investors and the employees.
2) The FM, SEBI, DCA all sat over the various controversies that came into light for more than 7 months and in the end gave a clean chit to the Ambani bros.
3) For India to be a Super-Power, we need dozens of mega conglomerates who have the scale, the size, market influence and purchasing power of any International capacity. Splitting the industrial houses after every generation (happened for Birla too) is doing the reverse.
4) Indian companies esp. the multi billion dollar ones should be professionally managed by a competent board of directors and not bow at the whims and fancies of the individual promoters.
5) There should be lot many professionally managed companies. The only notable one in India was L&T (it also faced 2 hostile takeover attempts and in the second one lost its entire cement division) It is observed that most of the family run business fail be remain attractive by the end of the second generation and the third generation actually sees the downfall. In comparison most of the professional driven well diversified enterprises last longer and generate better returns in the long run.
6) BJP, had it had overcome the internal fighting and interventions from the RSS, could have gained a lot of mileage from the way FM’s statements of giving a clean chit. Alas, the top leadership is senile and the second generation is not just ready.
7) Transparency is the only solution for good corporate governance. Each shareholder has a right to know where his/her money goes and what the roadmap of the company is. Unless the board is made stronger, answerable and filled with some independent directors more and more shareholders wealth will get eroded. Most of the times these predation come to the limelight during the troubled times and often it is too late, and the common investor is left with some bits of paper and a shattered confidence.
What was shocking is that Reliance was considered among the best managed Indian corporate which delivered fantastic returns year after year.