A forensic audit has found possible 'irregularities and mismanagement' in advances and investments made by Mangalore Chemicals and Fertilizers to his other group companies.
The battle for the takeover of MCFL has been going on for one year.
An open offer for acquisition of additional stake in a listed company can move forward only after issuance of 'observations' by Sebi.
The enforcement agency is looking to ensure that no big deals or transactions, such as the one Mallya struck with Diageo for Rs 500 crore, take place.
Most analysts, who have long stopped covering UB stocks because of continuing troubles, were surprised to see a sudden spike of up to 20 per cent in their share prices on Tuesday.
Markets were left high and dry last week, as the 'Monsoon Effect' played havoc on trader sentiment.
