Mumbai: Anil Ambani group companies Reliance Infra and RNRL on January 14 settled a Sebi probe into possible violation of securities market norms by them for a collective settlement charge of Rs. 50 crore.
In a consent order passed on January 14, the Securities and Exchange Board of India (Sebi) said that it has agreed to settle the case after the two companies agreed to its certain terms and conditions, including the payment of settlement charges.
The case relates to a probe by Sebi in dealings in the shares of another Anil Ambani group firm Reliance Communica-tions and investigations related to alleged violation of foreign investment norms.
As per the conditions of the settlement, the two companies would not be able to invest in any listed shares in the secondary market, other than mutual funds, until December 2012 and the individuals named in the case, which includes chairman Anil Ambani, cannot invest in secondary market until Decem-ber 2011.
However, this condition will not apply to primary market issuances, buybacks and open offers.
Commenting on the Sebi order, a Reliance Infrastructure spokesperson said: “Reliance Infra has voluntarily settled Sebi show-cause proceedings of June 2010 against the company and its directors.
“In accordance with Sebi consent mechanism, the settlement is without admission or denial of guilt. Settlement made in interests of investors to pre-empt unnecessary and time-consuming litigation,” he added.
