Anil Ambani, promoter and chairman of Reliance Power Ltd (RPower) reiterated his demand for an investigation by the capital market regulator Securities and Exchange Board of India (Sebi) into the hammering of the RPower stock following its listing on the bourses on February 11.
Addressing mediapersons on Sunday after a three-hour long board meeting of RPower, Ambani, in reply to a question, said, ?We have been maintaining that there has been a consistent hammering in the RPower stock post-listing. The stock got listed at Rs 540 and within four minutes was trading at Rs 380 on the day of listing. One can understand if the share price falls in a rising market as it can be a case of profit booking, but in a falling market when a stock price falls faster than the market, it is a clear case of bear hammering.?
He said there are certain provisions in Sebi?s regulations under which it can look in to certain specific cases on its own of a fall in stock prices. ?Sebi has all the data with it and we hope it will take up this matter for investigation,? Ambani said.
Pointing out that it is not the retail shareholders who have sold their shares post-listing but institutional investors who have off-loaded their holdings in bulk, Ambani claimed, in fact, that retail shareholders have continued to buy Reliance Power shares at the lower levels and have increased their holding by 2.50 crore shares post-listing, till date.
Earlier also, while making an announcement for the board meeting for the bonus shares on February 17, RPower had said, ?The decline in the Reliance Power stock price has been compounded by a vicious and orchestrated campaign of market manipulation and market abuse, unleashed by unscrupulous rival corporate interests to hammer down all Reliance ADA group stocks in an attempt to undermine our fair name and reputation, and cause losses to millions of genuine investors. Reliance Power has formally written to Sebi seeking an investigation in to the same.?