BSE Sensex crashes in the wake of "Satyam Fraud", Satyam shares fall by 78%

Breaking News! Hours after Ramalinga Raju resigned as The Chairman of Satyam Computers and admitted a major fraud in the company, the BSE Sensex reacted sharply by falling by over 750 points during the intra-day trade. The Satyam shares fell by over 78% per cent, casing doubt over the company's future.

While the IT shares continued to tumble on the BSE Sensex, the Indian Rupee weakened further against the US Dollar. The latest development involving Satyam, has sent a panic among the investors both in India and abroad.

The DSP Merril Lynch, which was hired by Satyam to review ways to enhance shareholder value, has decided to snap the contract with the Satyam Computers.

The Union Company Affairs Minister Mr Prem Chand Gupta has told the media that no leniency will be shown to anyone in the case. "The role of Satyam's auditors and directors will be probed", said Mr. Gupta. The Registrar Of Companies (ROC), Hyderabad has been asked to submit a report on the "fraud" in Satyam by January 14.