Nirmal Jain of India Infoline said he was shocked by Ramalinga Raju's confession on Satyam and hopes it gets over as soon as possible. “This is one company on which we had done an expose in 2001, where there was some subsidiary company in which sales were transferred. Most people don’t change their stripes and this one indication in year 2001 was also an indicator that these promoters are unscrupulous in that way.”

However, Jain is not worried about the impact of the Satyam scam on the overall FII or FDI confidence. He said that global scams have not affected their markets. “I am not particularly worried about the confidence of the economy or Indian corporates in general because this is a one off case.”

Sandeep Parekh form IIM Ahmedabad said that he had been listening to many other issues and so is not really shocked with Satyam. He said that somebody would have to acquire the company for operations to carry on with its current form

“It will have a massive impact. It would not jus be Securities and Exchange Board of India (SEBI) action that follows but there will also be international investigations. The Securities and Exchange Commission (SEC) which has a corporation agreement with Sebi will also crack down. The foreign exchange where the American Depository Receipts (ADR) is listed, will take action. So it is going to get pretty hot.”

Parekh believes Ramalinga Raju may have to face criminal prosecution of upto 10 years and penalty of Rs 25 crore. There will be several criminal action that will be followed; may last for many years, he said. “Beside stock prices the consequences will last for a long time.”

KN Vaidyanathan, CEO, Alchemy Capital Management, said one must now focus on damage control as the ramifications of this incidence is beyond just the Satyam stock or Satyam company. "There are ramifications to the employees and clients of Satyam. There are ramifications to outsourcing IT industry, Indian economy, and therefore Indian markets."

He feels the government needs to do three things in the immediate-, short- to medium-term. "The government has an opportunity to step right in under couple of sections of the Companies Act, which empowers them to kind of come in as an executive. The immediate is to bring an NSG commando equivalent who will come in as the CEO from the outside. You need to bring up a person of stature who can create confidence with clients and employees to conduct business as usual. Second, reconstituting the board. The CEO should be mandated to do within about three-months or so by bringing on all investors. The first two steps will give hope and someone may consider coming in and investing in this company - may be takeover or management buyout - whatever it is, if they see things happening to restore faith and credibility in the business. Third, is slightly shorter to medium-term is revisiting this subject of corporate governance in India."