Added Jagannadham Thunuguntla, head of the capital markets arm and director of India’s fourth largest share brokerage firm, the Delhi-based SMC Group: “Promoters showing such disregard for ethics and corporate governance could tarnish the reputation of family-owned businesses in India. “A lot of foreign institutional investors (FIIs) will be wary of investing in such companies and we already saw a lot of FIIs exiting the stock. The news has left a bad taste in the mouth.”