'No problem in Parekh, Karnik joining Satyam board'
The Govt does not see any conflict of interest in HDFC Chairman Deepak Parekh and former Nasscom President Kiran Karnik, who are directors on the board of Satyam's competitors, being on the troubled company's board.delhi Updated: Jan 12, 2009 15:08 IST
The government does not see any conflict of interest in HDFC Chairman Deepak Parekh and former Nasscom President Kiran Karnik, who are directors on the board of Satyam's competitors, being on the troubled company's board.
"There is no conflict of interest," Corporate Affairs Minister Prem Chand Gupta said on Monday when asked whether there could be a clash of interest in Parekh joining the Satyam board.
Karnik, who was nominated to the board of Saytam Computer Services by the government on Sunday, is also a board member of the Emergency Management and Research Institute (EMRI), a company promoted by disgraced Satyam Founder B Ramalinga Raju. Karnik past-president of the Nasscom, is also a director on the board of EXL Services, a business process outsourcing (BPO) unit having direct competition with the Satyam BPO. Similarly, Parekh is on the board of WNS Global Services, another rival of Satyam BPO.
The spokespersons of EXL Services and WNS Global Services confirmed that Karnik and Parekh continue to be on their respective boards.
"It is up to the government and the Company Law Board to take a call on this matter," said WNS Global Services spokesperson.
In addition to Parekh and Karnik, the government on Sunday appointed past presiding officer of Securities and Appellate Tribunal C Achutan as a member of the new board of Satyam to steer the company out of the crisis. Shares of Satyam were being traded at Rs 35.95 on the Bombay Stock Exchange, up 50.73 per cent over the previous trading session.