The exchange has asked NIIT to provide the details of the board meeting by October 26. A DSE official said the exchange will take a decision on the issue after receiving the company's response.

DSE had issued a show cause issued to NIIT on October 16 for concealment of price sensitive information and not informing the exchange about the bonus issue recommendation, thus violating the listing agreement with the bourse.

The exchange had given NIIT time till the afternoon of October 17 to respond as to why action should not be taken against it for deliberately withholding price sensitive information. Under the listing agreement with the exchange, a company is required to keep it informed about allsuch information which could have any effect on its price.

Senior company officials, including chief executive Vijay Thadani met the exchange officials on October 17 and sought time for filing a detailed reply till October 20.

According to DSE, the company had announced a 1:2 bonus issue at its board meeting but did not intimate the stock exchange about its decision prior to the meeting. The company notice to the exchange only mentioned that the company board will be meeting on October 14 to consider recommendations of dividend and approve the audited financial results for the year ending September 30, 1998.