Top SEBI officials say that the deal could be probed if it results in the change of management. ``We have to look at various angles before we start an investigation,'' SEBI officials said. ``Presently, we have information based only from the newspapers and the stock exchanges. We will ask the company to provide more details,'' officials add.

SEBI had in the past asked confectionery major, Nestle to make an open offer its shareholders as the Swiss multinational bought three per cent stake from the Khaitans and increasing its stake to over 51 per cent.

The stock markets, however, did not take the swadeshi takeover of the joint venture lightly. The scrip of KHML fell to its 52-week low of Rs 38.65 on Wednesday fromTuesday's closing of Rs 42, a decline of over 7.98 per cent. However, the Kinetic Engineering scrip remained static at Rs 97.50.

Brokers say that the Honda's departure will rob the company of the `Honda' brand name which helped it to sell scooters. ``If there is no open offer to the small shareholders, the scrip would go down further,'' brokers add.

On the other hand, Kinetic Engineering officials said that they would call an extraordinary meeting of its shareholders on October 3 to get their permission to invest Rs 35 crore in KHML. The Firodia company is expected to use its reserves of Rs 90 crore to buy out Honda's stake and invest in increasing R&D.

As per a company statement, while the JV will be dissolved, Honda will continue to supply technology. The Japanese company will also sell scooters manufactured in KHML under the `Honda' name in all the overseas markets.