Kanpur, Jan 29 (ANI): Many small time investors are faced with uncertainty as they try and cope with the losses incurred by them in the stock market due to financial fraud by IT service provider the Satyam.

The effects of the Satyam scandal are reverberating in the stock exchange of Uttar Pradesh.

If scandals like Satyam do keep on happening, then the recession period which we are facing currently may have to face more than that in future. In America, 16 banks failed. Similarly banks failed in Europe and Japan but luckily not a single bank failed in India but after this Satyam scandal, the economy got a shock, said Sushil Kanodia, share broker.

Amidst this major fraud, small investors and brokers are becoming skeptical about investing their money.

If big companies like Satyam does such kind of frauds then it would be difficult for the small investors to invest their money. It would be difficult for us to trust these companies. There is no such company on which an investor can rely upon and take a stand, said Rita, an investor.

On January 7, Ramalinga Raju, the founder and former chairman of Satyam, confessed to planning of rupees 7,136 crore fraud over several years by inflating the company's profits and assets. (ANI)