Nestle gets a third show-cause notice

quot;Rumours about the resignation were going the rounds in the stock market before the company officially announced it. Even this was done after we took up the matter with the company. By that time, Nestle scrip had shown huge volatility. Several investors seem to have lost money,quot; said an official. The company apparently claimed that it needsto inform its Swiss headquarters before announcing any decision in India.

If the exchange is not satisfied with the reply for the third show-cause notice, it is likely to suspend trading in the scrip for a particular period. Nestle officials had last week said Ardeshir8217;s exit was a result of quot;irreconcilable differencesquot; between him and Nestle SA of Switzerland. Differences had cropped up on the functioning of the company.