Anil Ambani-led Reliance Infrastructure and Reliance Power have received show cause notices from the Securities and Exchange Board of India (SEBI) over alleged violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and the SEBI Act, 1992.
SEBI show cause notice eight months after settlement
In its regulatory filing, Reliance Infrastructure said the show cause notice pertains to its exposure to CLE Private Limited. However, the company noted that SEBI’s notice comes nearly eight months after the resolution of a dispute with CLE Private Limited.
“The settlement with CLE Private Limited has already been concluded and stands fully implemented in terms of the Mediation Act, 2023. The Company shall take appropriate steps in the matter, as legally advised,” Reliance Infrastructure said.
Reliance Power said zero exposure to CLE
Another group company, Reliance Power, also received a show cause notice in connection with Reliance Infrastructure’s exposure to CLE Private Limited. However, it clarified that it has “zero exposure” to the entity.
“The Company has ZERO exposure to CLE Private Limited. The Company shall take appropriate steps in the matter, as legally advised,” Reliance Power said in its BSE filing.
Share price of Reliance Infrastructure
The share price of Reliance Infrastructure has seen a significant decline in the past few months, losing 23.93 per cent so far this year.
Share price of Reliance Power
The share price of Reliance Power has inched up marginally in the past few months, rising only 1 per cent so far this year and 15.79 per cent in the last six months.