Satyam Computer Services former Chairman B. Ramalinga Raju can face up to 10 years imprisonment together with a fine, which may expand to Rs 25 crore, in the financial scam, which led to erosion of investors wealth by socking Rs 10,000 crore in one day.

Stock market controller SEBI has already asked for a full-fledged enquiry into the matter in order to find out if Raju has breached the different rules relating to dealings in stock market.

SEBI would investigate various statutory infringements that include unfair trade practices, insider trading regulation and takeover code. The enquiry would be conducted by a SEBI General Manager, Sunil Kumar, who had been designated as investigating authority.

Under the SEBI Act, imprisonment and monetary penalty could be awarded "if any person contravenes or attempts to contravene or abets the contravention of the provision of this Act or of any rules or regulations made there under".

According to corporate law practitioners, Raju could be penalized for breaching the securities rules plus for abetting Satyam’s officers to commit financial fraud.

Besides infringement of the SEBI regulations, Raju can also be tried for other crimes including embezzlement of funds and violation of trust under a range of sections of the Indian Penal Code and Companies Act.

Most importantly, noted Supreme Court lawyer Fali S Nariman told that India needs to set up system to verify such business frauds and financial irregularities.

“It has grave implications on corporate morality... It is disquieting that it is happening all over the world. I am very disturbed and its a very bad sign,” he added.