Mining group Vedanta Resources is the biggest faller in the leading index following reports one of its subsidiaries in India, Sesa Goa, was under investigation over its accounts.
The stories claimed an inquiry had been initiated by India's Serious Fraud Investigation Office into the last eight years of Sesa's accounts. Share price movements would also be under investigation, it was alleged.
However Sesa, an iron ore producer, has issued a statement saying the alleged matters appeared to relate to a period before it was bought by Vedanta. As pertinently it said, as of today, it had received no notification or communication from the fraud office on the matter, and could not comment further. It said it was committed to "the highest levels of corporate governance and transparency" and would co-operate with any inquiry.
Vedanta, which has recently run into controversy over plans for a new bauxite mine, has dropped 76p to £22.57.
