Shares of Kaynes Technology India Ltd (KTIL) fell nearly 9% on Tuesday after the company informed the exchanges that its Managing Director, Ramesh Kunhikannan, had received a Show-Cause Notice from the Securities and Exchange Board of India (SEBI).
As of 9:22 am the shares were trading 8.57% lower at ₹3,923.95 on NSE.
SEBI’s Allegations Against Kaynes Technology MD
In a regulatory filing on March 11, Kaynes Technology confirmed that SEBI issued the notice on March 10, 2025, citing suspected violations in maintaining the Structured Digital Database (SDD) related to the company’s financial results for March 31, 2023. These alleged violations fall under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Company’s Response to SEBI Notice
Kaynes Technology has stated that it is reviewing the notice and will take appropriate legal steps to address the issue. The company assured investors that it remains committed to fully cooperating with SEBI and will provide a timely response to the regulator.
“We are currently reviewing the contents of the notice and will take all appropriate legal and procedural steps, including providing a timely response to SEBI,” the company stated in its filing.
Among analysts covering Kaynes Technology,
- 17 have a “buy” rating
- 5 recommend “hold”
- 1 suggests a “sell”
Market Outlook
While the stock has seen strong growth over the past year, concerns over regulatory scrutiny could weigh on investor sentiment in the near term. Analysts and investors will closely watch SEBI’s next steps and Kaynes Technology’s response to gauge the potential impact on the company’s financials and governance standards.
