Sebi to probe pledged share sale in Reliance Group cos
Market regulator Sebi is looking into allegations and counter-allegations related to the sale of pledged shares of Anil Ambani-led Reliance Group's three listed firms by two lenders, senior officials said on Monday.
Reliance Group has accused L&T Finance and Edelweiss Group entities of "illegal" and "motivated" actions in invoking the pledged shares of Anil Ambani group firms and selling them in open market causing a steep fall in share values.
L&T Finance and 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. Officials said the regulator has asked exchanges to look into the trade details and seek clarifications from the concerned entities regarding open market sale of shares to ascertain whether any norms were breached in the process.
The regulator will subsequently examine whether there was any violation of regulations relating to insider trading and disclosure norms, the officials said.
Reliance Power has already written to Sebi to investigate the matter and impose restrain on entities that pressed huge sale orders significantly below the prevailing market price and indepth investigate the matter. Similar complaints are expected to be filed by Reliance Capital and Reliance Infrastructure as well, sources said. When contacted, a Reliance Group spokesperson said, "As resolved by the boards of various group companies, we will take all legal steps necessary to protect and enhance the value of our stakeholders, including pursuing the matter with an appropriate regulator."
Earlier on Saturday, boards of three listed companies of the group -- Reliance Power, Reliance Infra and Reliance Capital -- had approved and recommended "all appropriate legal steps" to protect shareholders' value. When contacted, L&T Finance and Edelweiss referred to their statements issued on Friday in which they had strongly refuted the allegations of Reliance Group.