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MUMBAI: Market regulator, Securities and Exchange Board of India (SEBI), said it has disposed of a complaint against a planned initial public offering (IPO) by Reliance Power Ltd, clearing the way for final approval what could be the country's biggest-ev er listing.

Parent Anil Dhirubhai Ambani Group (ADAG) has said the IPO entailed a sale of a 10.1 per cent stake in Reliance Power, which could raise up to $2.8 billion.

Late on Thursday, the Securities and Exchange Board of India (SEBI) directed ADAG's entire holding in Reliance Power, 20 per cent of the capital, be locked-in for five years from the date of allotment, rather than the 18.6 per cent proposed by the compan y.

The SEBI also said in a statement it had no jurisdiction to decide or take action on allegations the IPO would affect the interests of shareholders in Reliance Energy Ltd, an ADAG company, which owns 50 per cent of Reliance Power.

A lawsuit filed in the Mumbai High Court by an independent organisation in October had claimed a "serious breach of corporate governance" in the IPO, the SEBI said.

The complainant said Reliance Energy shareholders would be adversely affected by the IPO because several major projects had been transferred to Reliance Power from Reliance Energy, the SEBI said.

Reliance Power maintained its activities were "in accordance with law", the SEBI said.

ADAG, which also has interests in telecom, financial services, infrastructure and entertainment, plans to offer up to 30 per cent of the shares to retail clients, with a further 10 per cent going to high net worth individuals.

Institutional investors will be offered 60 per cent, and may get more if retail demand is weak. UBS, ABN AMRO, JPMORGAN, DEUTSCHE BANK, Enam Securities, ICICI Securities, JM Financial and Kotak Mahindra Capital manage the issue. Macquarie and SBI Capital Markets are co-managers.

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