Crisis-ridden Satyam Computer today described the government's decision to appoint a three-member board as the beginning of a new chapter in its 20-year-old history, even as India Inc expressed a sigh of relief saying the move would restore confidence of investors.
"This is a vital stabilizing development for Satyam, and it marks the beginning of a new chapter in the company's history," Satyam spokesperson said.
"It is the best news we have received in the past four weeks," a company statement said in eye of the storm following the startling disclosure of financial fraud made by its founder-chairman B Ramalinga Raju.
Ficci President Rajeev Chandrasekhar, said the priority of the government "should be to ensure that the Satyam board immediately arranges financing to ensure that salaries and payrolls of the 50,000 plus employees are met without disruption".
The government's decision to appoint a three-member board comprising HDFC Chairman Deepak Parekh, former Nasscom President Kiran Karnik and former Sebi member C Achutan, Ficci said, "This will restore confidence of global investors in India Inc."
Satyam's domestic competitors such as Infosys and Wipro too have welcomed the move of the government to salvage the troubled company.
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According to Satyam, the reconstitution of the board will "ensure the company's continued operations, help maintain customer confidence and associate morale, and restore investor trust."
The apex IT industry body Nasscom said, "This will help ensure business continuity, built confidence and protect the interest of all stake holders -- employees, customers and investors."