Trending@Hunt – IL&FS gets a new Board

The government has sacked the 15-member board of bankrupt Infrastructure Leasing & Financial Services (IL&FS) and appointed a new board headed by Kotak Mahindra Bank’s MD, Uday Kotak in a major attempt to boost investor confidence.

It was argued that IL&FS’ existing board be suspended after a series of defaults by the company led to meltdown of confidence in financial markets. The government’s drastic step, the second time in 10 years (last time being Satyam Computer Services in 2009), was prompted by rumours and an edgy financial system.

Infrastructure Leasing and Financial Services Ltd (IL&FS) is turning out to be a lesson in the making for rating agencies and even shareholders.