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The Anil Ambani-led Reliance Group is likely to take legal action against NBFCs, including Edelweiss and L&T Finance, for offloading pledged shares without any communication, sources close to the group told BusinessLine .
The NBFCs have refuted all the allegations, saying due process was followed.
Last week, the share prices of Reliance Group companies fell sharply after Reliance Communications said it would seek debt resolution through the NCLT. The sell-off prompted L&T Finance and Edelweiss to sell pledged shares to make up for the fall in collateral.
“The action of L&T Finance and Edelweiss, recovering ₹400 crore through open market sale of pledged shares, has hugely impacted 47 lakh retail and small shareholders, and eroded over ₹10,000 crore in the market value of their investments,” a source close to the group said.
The source said there was no communication from the NBFCs before offloading the shares and that they sold shares below the prevailing market prices. There was selling pressure from them in the derivative segment below the market price. These three factors contributed to a sharp fall in the share prices, the source said.
But experts say NBFCs are allowed to sell shares when there is lack of adequate margin to cover risk. Such a step is part of risk management, the terms of which are set during the pledge deal.
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