The Securities and Exchange Board of India (Sebi) has restricted Vinit Kumar, chairman of Temptation Foods, from publishing or circulating in any manner any false or mis-leading information regarding the company's holding in rival Kohinoor Foods.
Temptation Foods has been claiming that it holds 13.69 per cent stake in Kohinoor Foods, while the latter has complainec to Sebi that Temptation holds less than 3 per cent in the company. Kohinoor Foods has been trying to stall a takeover of its company by Temptation. Sebi's finding has revealed certain mismatch in the shareholding pattern of Temptation Foods in Kohinoor.
Temptation Foods, however, is free to file any objection against this order within 15 days from today, according to a Sebi order issued today. Sebi in its order has stated that as the rumours of impending takeover are currently in circulation in the market, it is apprehended that lay investors could be further misled into trading in Kohinoor Foods and hence it has issued this order against Temptation from publishing any false or misleading information.
A Temptation Foods spokesman said the company has not been giving any misleading information to any one and neither does it intend to do so.
