Kaveri Seeds under bear attack?

MUMBAI: Kaveri Seeds came under a bear attack on Monday. Early in the day, futures contracts of Kaveri plunged as much as 10.7% on rumours that Securities and Exchange Board of India (Sebi) has launched an enquiry into the company’s financials.

Market participants said a copy of the alleged Sebi letter ordering an inquiry was doing the rounds in various WhatsApp message groups. A Kaveri Seeds spokesperson denied knowledge of any such inquiry or having received any letter from Sebi.

Futures of Kaveri recovered its losses and ended 0.5% higher at Rs 346 on Monday. Kaveri shares rose 5.9% to close at Rs 367.35. Open interest in Kaveri was 27.39 lakh shares on Monday as against 750 in the last week of October.