Reliance Power, Reliance Infra shares in focus after SEBI show cause notices; firms reply

Shares of Reliance Power Ltd and Reliance Infrastructure Ltd are in focus on Tuesday after the two companies clarified on SEBI show cause notices over alleged violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 read with SEBI Act, 1992.

In a filing to BSE, Reliance Power said it received a show cause notice from SEBI in relation to Reliance Infrastructure Limited’s exposure in CLE Private Limited, for alleged violations, saying it has nil exposure to CLE Private Limited. The company, Reliance Power said, shall take appropriate steps in the matter, as legally advised. 

Reliance Infrastructure in another filing said it had earlier disclosed on February 9, 2025, that the dispute in relation to the company’s exposure with CLE Private Limited was settled through filing of consent terms before the Mediation Centre, Hon’ble Bombay High Court in compliance with the provisions of the Mediation Act, 2023.

"After belated eight months, the company has today received from SEBI a Show Cause Notice for alleged violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 read with SEBI Act, 1992. The settlement with CLE Private Limited has already been concluded and stands fully implemented in terms of the Mediation Act, 2023," Reliance Infra said.

Reliance Infra said it would take appropriate steps in the matter, as legally advised. 

Earlier on February 9, Reliance Infra had said that its dispute with CPL stands fully settled, pursuant to which assets/economic interests in assets of CPL of Rs 5,777.13 crore stand assigned/transferred to the company and Rs 726 crore being the decreed amount stands converted into secured loan, with customary representations, warrantees and indemnity in favour of the company.

Reliance Infra noted that the consent terms under the Mediation Application No. 181/2023 were submitted to the Mediation Centre, Hon’ble Bombay High Court in compliance with the provisions of the Mediation Act, 2023, by and between Reliance Infrastructure Limited and CPL to resolve their outstanding disputes and claims.

Full and final settlement of all outstanding disputes and claims against CPL for an amount of Rs 6,503.13 crore were achieved, it suggested.