Sebi vetting bulk sale of shares

Markets regulator Sebi is looking into the open market sale of pledged shares of three Reliance Group companies by L& T Finance and Edelweiss Group.

According to sources, the regulator has asked exchanges to look into the trade details and seek clarifications from the concerned entities regarding the open market sale of shares to ascertain if any norms were breached in the process.

Last week shares of Anil Ambani- led Reliance Group companies — Reliance Power, Reliance Infrastructure and Reliance Capital — plunged after their pledged shares were offloaded by the two lenders.

These companies had written to Sebi to investigate the matter and impose restraints on entities that pressed huge sale orders significantly below the prevailing market price. The companies have asked for in- depth investigation into the matter.

Reliance Group has accused L& T Finance and Edelweiss Group entities of "illegal" and "motivated" actions in invoking the pledged shares.

L& T Finance and

Reliance has accused L& T Fin and Edelweiss of "illegal" & "motivated" actions in invoking the pledged shares

Reliance Infr blamed L& T Fin for market value erosion, saying it has impacted its over 8 lakh shareholders

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Edelweiss Group have refuted the allegations and have counter- alleged that Reliance Group failed to make timely payments, which, they said, necessitated sale of pledged shares.

Earlier on Saturday, boards of the three listed companies of the group — Reliance Power, Reliance Infrastructure and Reliance Capital — had approved and recommended "all appropriate legal steps" to protect shareholders' value.

L& T Finance and Edelweiss had issued statements on Friday in which they had strongly refuted the allegations of Reliance Group.

( With inputs from agencies)