BusinessIndia

Certain entities of Edelweiss Group responsible for losses

Mumbai, Feb 8 (IEBusiness) Three listed entities of Indian conglomerate Reliance Group, owned by Anil Ambani on Friday said L&T Finance Holdings Ltd and certain entities of Edelweiss Group were responsible for their shares dropping near 55 per cent over the last few days.

A few non-banking financial companies (NBFCs) invoked pledged shares of Reliance Capital Ltd, Reliance Infrastructure Ltd and Reliance Power Ltd, and made open market sale of about Rs 400 crore during February 4-7, Reliance group said in its statement.

This was illegal, motivated and wholly unjustified action by theabove two 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 4 short days, causing substantial losses to 72 lakh institutional and retail shareholders, and harming the interests of all stakeholders.

As legally advised, Reliance Group states the purported exercise of rights to enforce the security is illegal and excessive, and against the process and requirements of the respective borrowings’ documentation and the above seller entities are regulated by RBI and/or SEBI and required to act within the strict parameters of the
regulatory framework.

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.

Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd. (and their various subsidiaries) are performing satisfactorily on all operating parameters, and there is no change whatsoever on any aspect as compared to the position prevailing prior to these sales, it added.

Source
Via UNI-India
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