Anil Ambani promoted Reliance Group on Friday alleged that the action of a few NBFCs, substantially L&T Finance and certain entities of Edelweiss Group, of invoking pledge of listed shares of Reliance Group and making open market sales of about Rs 400 crore from February 4 to February 7, has led to a near 55 per cent drop in the Group's market capitalisation.

Reliance Capital, in a statement, charged that: "The illegal, motivated and wholly unjustified action by the above 2 groups has precipitated a fall of Rs 13,000 crore, an unprecedented nearly 55 per cent, in market capitalisation of Reliance Group over just these four short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all stakeholders."

As legally advised, Reliance Group said the purported exercise of rights to enforce the security is illegal and excessive, and against the process and requirements of the respective borrowings' documentation.

"The manner of conduct of the above open market sales, without any attempts whatsoever at orderly market disposal through a bid or structured process for shares comprising the holding of the promoter group, is also illegal on several counts, including amongst others, price manipulation, insider trading, front running and market abuse, and is in violation of various regulatory provisions, including inter alia the SEBI (Prohibition of Fraudulent and Unfair Trade Practices), Regulations, which are applicable to all persons (including NBFCs) dealing in listed securities, whether on invocation of pledge or otherwise," the statement said.

Related Topics
comment COMMENT NOW