"We will look at all options and ensure that the takeover code is not flouted", Mr Varma said, making it clear that Sebi would not hesitate to act tough and implement the provisions of the takeover code. Sebi officials said "if push came to shove" the regulator would not shy away from launching a full investigation into the matter. Sebi chairman DR Mehta and senior executive director in charge of takeovers OP Gahrotra, are out of the country. Regulatory officials also made it clear that they were on the case and confirmed that some top industrialists had met the Sebi brass pitching for Bombay Dyeing some time ago. However, there is a feeling of urgency now in the regulatory body, following the explosion of media reports and the daily briefings by Mr Bajoria to the media from Calcutta.

The focus of the Sebi attention is to understand who the relatives and friends are so that the regulator can understand whether they come into the ambit of "persons acting in concert" under the Sebi takeover regulations. Sebi officials also said the issue of whether Mr Bajoria and Bombay Dyeing officials would be called for personal hearings on the issue would be decided once the reply came through from the jute baron.