India's Sesa Goa, a $5 billion unit of London-listed metals group Vedanta Resources, is being investigated by the Indian government for financial and other irregularities. India's largest iron-ore exporter said on Thursday it and its unlisted Sesa Industries Ltd (SIL) subsidiary were under investigation by the Serious Fraud Investigation Office (SFIO), and the probe had to be completed in six months.
The investigation comes 10 months after India's biggest corporate scandal, a $1 billion fraud at IT services firm Satyam Computer. "I think the overseas investors will be very happy that the regulatory agencies in India are becoming more and more intrusive in company affairs," said Rishi Sahai, managing director of Cogence Advisors, a New Delhi-based corporate advisory firm.