Anil Ambani companies Reliance Infrastructure Ltd (R-Infra) and Reliance Natural Resources Ltd (RNRL) have been barred by SEBI from accessing the secondary market until December 2012.
Also five individuals associated with these companies, including Mr Anil Ambani, have been barred until December 2011, said SEBI in its consent order which disposed of its proceedings against the two companies.
The ban on these entities and individuals is not applicable to instruments such as mutual funds, primary issuances, buy-backs and open offers.
Payment of settlement fees of Rs 25 crore each (Rs 50 crore in total) was made jointly and severally by the companies as well as the five individuals, according to recommendations made by a SEBI-constituted high powered advisory committee. Apart from the settlement charges, the committee asked the company to rotate its statutory auditors. The companies in question said in a news release that this has already been implemented. The consent terms shall apply even after these companies undergo any change on account of merger, amalgamation or any other corporate action. The committee found R Infra and RNRL responsible for “misrepresenting the nature of investments in yield management certificates/deposits and the profits and losses thereof” and misusing the framework of SEBI's FII regulations.
The conclusion was based on investigations done by SEBI into the dealings either directly or indirectly in the shares of Reliance Communications Ltd by ADA group companies using ECB /FCCB proceeds for fraudulent and unfair trade practices under the relevant regulations.
I refuse to believe this. As an investor, I've always trusted Reliance Adag and Anil Ambani. This is just a conspiracy to sabotage his image.. Just read this article and you'll know what I'm talking about
ReplyDeletehttp://online.wsj.com/article/SB10001424052748703959104576081651132380720.html?KEYWORDS=reliance
Sir this is the paragraph from the article your have recommended.
ReplyDelete"Meanwhile, the SEBI said its investigations revealed that both Reliance Infrastructure and Reliance Natural Resources were responsible for misrepresenting the nature of investments in their annual reports for the fiscal years through March 2007, 2008 and 2009.
The regulator said it accepted the settlement on the condition that the two companies will rotate their auditors, with a gap of three years between two audits by a single auditor. Post the settlement, it has disposed off the proceedings against the companies and the individuals."
So it's clear that something wrong from the point of view of SEBI was their.