New Delhi: More trouble brewing for former Satyam CEO Ramalinga Raju. Securities and Exchange Board of India (SEBI) has gathered vital evidence against him that suggests Raju was involved in insider trading.
Sources say, the SEBI team has also found evidence of market manipulation by Raju
The revelations came on day the Satyam board appointed A S Murthy as the new CEO of the company
Murthy, who has been with the company for 15 years, was handling Satyam's global business division.
The government-appointed board's decision came as a potential bidder said it would not increase its stake in Satyam for now and a customer suspended new contracts in the wake of India's biggest corporate scandal.
Murty will be the chief executive with immediate effect, the company said in a statement. Previously the company spelled his name Murthy.
"This company is up for grabs in a way," said Sudin Apte, country head of market research firm Forrester. "And I think the pace at which things are happening, it may happen much faster than anticipated."
Satyam, a provider of software and back-office outsourcing services, has been battling for survival since Ramalinga Raju resigned as chairman on January 7, revealing profits had been overstated for years and that $1 billion of cash and bank balances on the company's books did not exist.
The board has been working to revive the confidence of its more than 600 clients and about 50,000 staff.
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