Kiran Karnik appointed Satyam chairman

Kiran Karnik was appointed chairman of Satyam Computer Service on February 6, a day after AS Murty took over as CEO. Karnik's appointment by Union minister for corporate affairs PC Gupta will complete the installation of new management after a government-appointed board took over the company's reins.

The board consisted of former Nasscom former president Karnik, HDFC chairman Deepak Parekh, Securities Appellate Tribunal former chairman C Achutan, CII chief mentor Tarun Das, LIC nominee S Balakrishna Mainak and ICAI past president TN Manoharan. Prior to his tenure at Nasscom, Karnik was managing director for India at Discovery Networks between 1995 and 2001. He had over 20 years' experience with the prestigious ISRO before leaving government.

Gupta's announcement capped a day of several developments related to Satyam, which has been hit by India's largest accounting fraud, estimated at Rs 7,800 crore. While agency reports quoting the investigating team from market regulator Sebi said there was evidence of insider trading by the promoters, Gupta said the sale of 40,000 shares by Murty between May and December 2008 as reported by newspapers (including FE) could not be placed in the same category. "What's wrong in that? If you have shares, you too will sell them," Gupta said.

Murty, who has been with Satyam since 1994, sold his shares for an estimated Rs 90 lakh, according to regulatory disclosures made by Satyam to the BSE on Friday. He sold 21,000 shares between December 12 and 15 and 19,000 more on December 16, the day Satyam made a failed Rs 8,000-crore bid for the two Maytas firms run by the sons of Satyam's disgraced founder, B Ramalinga Raju.

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