Sarbanes-Oxley ripples felt on the Indian sub-continent.

Good news for those with business ties in the Indian sub continent. Last week, the DNA (http://www.dnaindia.com/report.asp?NewsID=1088529)provided details on the Ernst and Young India CFO survey.

It appears that out of the 125 CFO’s who were interviewed, 43% wanted the country to follow a SOX like model for internal controls. In fact, 56% felt that the benefit from corporate governance requirement outweighs the compliance cost.

Note that of these 125 CFO’s, 78% represented listed companies.

There was also an overwhelming support (81%) for the existing regime of corporate governance certification by CFO/CEO, despite its perceived high level of risk. About 60% of the CFOs believed that regulatory compliance is not a burden.

There maybe growing opposition to the rigorous demands of Sarbanes-Oxley in the U.S but it is surely gaining positive momentum elsewhere. With a large number of financial and other operations being offshored to India, increased corporate governance in the sub continent is a welcome phenomenon.