Updated on Monday, January 12, 2009, 00:00 IST

New Delhi, Jan 12: In a quick response to save India Inc's image from the ripple effects of the Satyam fraud, industry body CII today set up a special task force on corporate governance to be headed by former Cabinet Secretary and India's Ambassador to the US, Naresh Chandra.

The decision to set up the task force was taken by the National Council of the Confederation of Indian Industry (CII) which met in Ahmedabad.

"The issue of corporate governance was discussed in great detail in the context of the events at Satyam," the chamber said in a statement here.

It said the task force would look at the issues emerging out of the Satyam episode and make its recommendations.

The roles of independent directors and auditors have come in for a sharp criticism after unfolding of the Rs 7,800 crore Satyam fraud which has wiped about three billion dollar market assets of retail and institutional investors.

Satyam's founder and ex-chairman, arrested by CB-CID police on Friday last week, was heading the corporate social responsibility committee of CII and had enjoyed a tall stature in the chamber.

Bureau Report