India Names Three to Satyam Board

Gupta said the three new board members will be Deepak Parekh, head of the Housing Development Finance Corp. bank; Kiran Karnik, the former head of Nasscom, a trade body of technology companies; and C. Achuthan, a legal expert and a former member of the Securities and Exchange Board of India.

The company welcomed Sunday's announcement as "the best news we've received in the past four weeks."

"This is a vital stabilizing development for Satyam, and it marks the beginning of a new chapter in the company's history," the company said in a statement.

Gupta named the three to the board some 36 hours after he disbanded the previous board.

The new board will meet within the next 24 hours, but Gupta said the government may name up to seven more people to fill out the board. The three will choose among themselves who will serve as the chair.

Karnik said he was confident he and the other new board members would get Satyam "back on the rails."

"It's certainly going to be a challenge, but I think it's very important for the whole Indian IT industry and indeed the country to maintain customer confidence," Karnik told NDTV news channel.

Parekh told NDTV that the board's job will be "to see that employees don't lose their job, Satyam doesn't lose its clients ... and to come out with actual accounting numbers."

Holders of the company's U.S.-listed shares -- which have been halted from trading on the New York Stock Exchange while regulators investigate -- have filed at least six class action suits against Satyam, the law firms representing the investors said in separate statements.