Arun Bajoria failed to show at Thursday's hearing with the Securities and Exchange Board of India (Sebi), the Hindu Business Line reported.

"Neither Mr Arun Bajoria, nor his legal representative were present for the hearing today," a SEBI source said.

The SEBI Chairman, Mr D.R. Mehta, said the regulator had received a letter of explanation from Mr Bajoria and is examining the issue. On Wednesday Mr Bajoria had told reporters that he or one of his lawyers would "positively" be attending the hearing.

Mr Mehta said: "We are undecided on what our course of action will be. Whether to issue an ex-parte order or consider granting him an opportunity for a fresh hearing.".

The SEBI Chairman, Mr D.R. Mehta, said the regulator had received a letter of explanation from Mr Bajoria and is examining the issue.

It is unlikely that Sebi will accommodate Mr Bajoria again however, as he has consistently attempted to disrupt the investigation into his acquisition of Bombay Dyeing shares. He has been accused of failing to inform Bombay Dyeing when he bought more than five per cent of the company's shares.

Mr Bajoria has said that the letter he sent to the company informing it of his actions must have been lost in transit. He also claims that he told the Calcutta Stock Exchange of his actions.