India ordered the Serious Fraud Investigation Office to investigate regulations at Satyam Computer Services Ltd, Prem Chand Gupta, minister for company affairs said in New Delhi today.
The government required its agency to conduct a probe and submit its report in three months, the Business Standard reported. The government's actions are seen as an attempt to recover the dignity of India's markets as a safe investing country.
Satyam's CEO Ramalinga Raju resigned Jan. 7 confessing of falsely inflating the company's profits for several years creating a fake cash balance of $1 billion.
Raju was arrested along with his brother and co-founder Rama on Jan. 9. Both were taken into judicial custody until Jan 23 and will be kept in a jail as the fraud investigation continues, the Wall Street Journal reported. They face charges of criminal conspiracy, cheating and falsification of records.