Kaynes Technology shares fall 5% after MD Ramesh Kunhikannan receives SEBI show-cause notice

Semiconductor manufacturing company Kaynes Technology India Ltd (KTIL) on Tuesday (March 11) said its Managing Director, Ramesh Kunhikannan, has received a Show-Cause Notice from the Securities and Exchange Board of India (SEBI) dated March 10, 2025.

"...this is to inform you that Mr. Ramesh Kunhikannan, Managing Director (Noticee) of Kaynes Technology India Limited has received a Show-Cause Notice dated March 10, 2025 (Notice) from the Securities and Exchange Board of India (SEBI)," Kaynes Technology India said in a regulatory filing

The notice pertains to alleged violations in maintaining the Structured Digital Database (SDD) related to the company’s financial results for the period ending March 31, 2023, under the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Also Read: Kaynes Technology shares fall 20% after management cuts FY25 revenue guidance

"The Notice alleges suspected violations in maintenance of Structured Digital Database (SDD) pertaining to financial results for the period ended March 31, 2023 as per Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (herein after referred as PIT Regulations)," it said.

Kaynes Technology stated that it is reviewing the notice and will take appropriate legal steps, including submitting a response to SEBI. The company and its leadership have affirmed their commitment to fully cooperating with the regulator to resolve the matter in line with applicable laws.

"We are currently reviewing the contents of the Notice and will take all appropriate legal and procedural steps, including providing a timely response to the SEBI. The Company, Noticee and all concerned remain committed to fully cooperating with SEBI to resolve this matter in accordance with the applicable legal and regulatory framework," it added.

Out of the 23 analysts that have coverage on Kaynes Technology India, 17 of them have a "buy" rating on the stock, five of them said "hold", while one has a "sell" recommendation.

Also Read: Kaynes Tech eyes ₹4,000 crore in semiconductor business revenues by 2030

Shares of Kaynes Technology India have opened 4.5% lower on Wednesday at ₹4,101. The stock is down 47% from its recent peak of ₹7,822.