Satyam Probe: Raju Held, New Board Appointed

by Jordan Yerman | January 16, 2009 at 09:25 am

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An Indian court has extended custody for Ramalinga Raju, former CEO of Satyam Computer Services, who will be held through Monday.

Market regulators still want to question Raju about the massive fraud that dragged down the Indian stock market. Reuters UK has profiles on the six directors appointed to Satyam's board by the Indian government in hopes of containing the fallout from the fraud, in which over 90% of Satyam's profits turned out to be basically fictional.

Meanwhile, Satyam denies that its top execs have fled India or gone into hiding:

The company said Keshab Panda is very much in India while Mynampati and Aggarwal have returned to the US and Singapore, respectively, where they are based.

The company further said, these executives are currently meeting customers in their regions to assure them of its commitment.

As you may imagine, this scandal has decimated Satyam's stock, and the company is looking for a bailout from the private sector.

Satyam shares plunged more than 80% following Mr Raju's confession of fraud last week.

On Wednesday, board chairman Deepak Parekh said the firm would approach banks to raise funds for the company.