Rumors have been doing round in the market that Reliance is keen in acquiring the Chennai-based software company and the grapevine even said that Dinesh Dalmia, one of the promoters of the software company, might also sell his stake to Reliance.

Reliance spokesman told The Financial Express that "it is not the company policy to comment on speculations and rumors"

However, he said: "In the interest of investors, Reliance categorically deny all the speculation on the acquiring of a controllable stake in DSQ Software."

DSQ Software stocks has been on a continuous downward spiral since September. The stock is at Rs 497.60, down from Rs 769 (fall of 35.3 per cent) on the BSE.