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No Sebi ban, settlement voluntary: Anil Ambani

No Sebi ban, settlement voluntary: Anil Ambani

The ADAG Chairman claimed two of his group firms settled the Sebi probe voluntarily and the regulator has not imposed any ban on the companies.

Anil Ambani on Sunday claimed that his two group firms -Reliance Infra and RNRL - settled the Sebi probe voluntarily and the regulatorhas not imposed any ban on the companies or their directors from participationin the capital market.

Contesting media reports that Sebi barred two group firms and its directorsfrom dealing in the capital market, Ambani told reporters, "Sebi has notbanned R-Infra, RNRL, Anil Ambani, other directors from capital markets or fromstock markets."

"Sebi has placed no restrictions on raising of equity and debt resourcesby any Reliance ADA Group company or individual... the matter has been settledthrough voluntary consent proceedings as stated in the Sebi order," hesaid.

Ambani's clarification comes in the wake of Sebi passing a consent order onFriday to settle a probe into the alleged violation of regulations for foreigninvestment and unfair trade practices by Reliance Infra and RNRL.

The terms include payment of Rs 50 crore as settlement charges, which have beenpaid by the directors without any financial burden on the companies involved.

Furthermore, the two companies, their chairman Anil Ambani and four otherdirectors offered to abstain from any investment in listed stocks subject tocertain conditions, according to the Sebi order.

While R-Infra and RNRL cannot invest in the secondary market till 2012, ChairmanAnil Ambani and the other directors will not do so till December, 2011.

However, the debarment of companies and officials does not apply to investmentsin mutual funds, primary market issues, buybacks and open offers.

The other officials named in the order include Reliance Infra Vice ChairmanSatish Seth and three directors - S C Gupta, Lalit Jalan and J P Chalsani.

The case relates to a probe by Sebi into dealings in the shares of another AnilAmbani group firm Reliance Communications and alleged violation of foreigninvestment and unfair trade practices norms by R-Infra and RNRL.

"In accordance with Sebi consent mechanism, the settlement is withoutadmission or denial of guilt. Settlement (was) made in interests of investorsto preempt unnecessary and time-consuming litigation," Ambani said.

Sebi had also said the consent order was without prejudice to its right toinitiate enforcement action, including reopening of the proceedings pendingagainst the entities if any of its terms were breached or any of therepresentations made before it were found to be untrue.

Asserting that Reliance Power (since RNRL has merged with RPower) will be India's largestpower generation company, with a market cap of over Rs 40,000 crore already,Ambani said the company retains the full financial flexibility to raiseresources and implement its growth plans.