The shares of Olam International Ltd, which is an agricultural commodity trader, fell as much as 11 per cent following concerns relating to the accounting practices at the company.

Muddy Waters raised questions over the accounting practices being followed by the company and the shares began to record a steel fall. Olam has hit back at Muddy Waters founder Carson Block for leveling "baseless and unsubstantiated assertions" against the company.

Olam "strongly rejects the assertions made by Carson Block and or Muddy Waters," it said in a statement.

The company said that it was not contacted by Carson Block or Muddy Waters relating to the issue. It is planning to issue a new statement if Muddy Waters goes ahead and publishes the report on the Olam International.

The company's shares were down 10.6 percent at S$1.55 this afternoon at the time of reporting. The company emerged as the largest loser in a firm benchmark index as its volumes increased to almost double its whole day average for 30 days, to 29 million shares.

Experts say that Olam will now have to come out with facts to prove that its accounting standards are acceptable.