MUMBAI - SHARES in India's Mahindra Satyam slid for a second day on Thursday after police said an accounting fraud embroiling the outsourcing company could be far larger than initially believed.

The shares of Satyam Mahindra, originally known as Satyam Computer Services, were down 4.09 per cent at 86.85 rupees in early afternoon trade after dropping more than eight per cent to 83.05 earlier.

The shares fell nearly 11 per cent on Wednesday as investors were rattled by the newest developments in what was already known as India's biggest corporate fraud.

India's Central Bureau of Investigation on Tuesday filed new charges against 10 people accused in the case, including company founder and chairman B. Ramalinga Raju. The accused are all in custody.

The federal police agency said the latest charges included allegations that the accused inflated revenues by 4.30 billion rupees (S$128.1 million) using false invoices.

'The accused (also) forged the board resolutions and unauthorisedly obtained loans/advances to the tune of 12.20 billion rupees in the name of Satyam Computers,' the agency said in a statement.