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Implications of Satyam Scandal

“We have to go beyond this letter and find out what actually has happened,” the Securities and Exchange Board of India told reporters.

“This is an issue which has very serious implications… It also raises the issue of authenticity of accounts that have been audited and certified by the auditors.”

Hitesh Agrawal, head of research with Angel Broking, said: “Indian corporate governance standards have been put at stake here, the role of the auditors have also come under serious question”.

The BBC’s Sanjoy Majumder in Delhi says analysts see this as one of the worst crises to have hit corporate India, at a time when the country was hoping to attract foreign investors looking for quick gains in emerging markets.

BBC correspondent says many fear that the international community will now take a harder look at Indian companies and think twice about placing their money there.

Source / Via : BBC News