SEBI bans two Anil Ambani firms from trading
The Securities and Exchange Board of India on Friday passed an order restraining Anil Ambani and four other executives of his companies from investing in the secondary market (including stock markets) until December 2011. HT reports.india Updated: Jan 15, 2011 03:00 IST
The Securities and Exchange Board of India (SEBI) on Friday passed an order restraining Anil Ambani and four other executives of his companies from investing in the secondary market (including stock markets) until December 2011.
It also stopped two of Ambani's group companies, Reliance Infrastructure and Reliance Natural Resources Ltd (RNRL), from doing the same till December 2012.
Both the companies will also pay R25 crore each under the SEBI ruling that the Anil Ambani group has also agreed to follow.In 2007, the SEBI had charged the two companies with having violated trading rules when they allegedly used funds obtained through external commercial borrowings (ECBs) to invest in the shares of another Anil Ambani firm, Reliance Communications.
While Ambani and his firms had proposed settlement twice last year, the SEBI order followed recommendations from its own high-powered advisory committee (HPAC).
In a statement, the Anil Ambani group said the order involved a "voluntary decision not to make investments in listed securities" and said this would "conserve resources for investment in own substantial projects, and will not impact growth prospects in any manner".
The company added that the settlement is "without admission or denial of guilt".
The ban, however, does not extend to mutual funds, initial public offerings, buyback and open offers.
"The applicant companies shall not make investments into listed securities in the secondary market until December 2012; and the individual applicants shall not make investments in listed securities in the secondary market until December 2011," said the consent order passed by SEBI.