Anil Ambani and his group companies Rel Infra and RNRL settled a case of alleged violation of trading regulations with the market regulator by paying Rs50 crore as settlement amount
In what appears to be the biggest settlement through a consent order, the Securities and Exchange Board of India (SEBI) has barred Anil Ambani, chairman of Anil Dhirubhai Ambani group (ADAG), and four of its directors from investing in the markets till December 2011. SEBI has also asked ADA group companies Reliance Infrastructure (RelInfra) and Reliance Natural Resources (RNRL), which has been merged with Reliance Power (RelPower), not to invest in the secondary markets-other than mutual funds-till December 2012. However, it said that the directives are not applicable to primary issuance, buybacks and open offers.
The market regulator, while accepting a settlement from the ADAG companies settled the case through consent after Anil Ambani, RelInfra, RNRL and its directors collectively paid Rs50 crore as the settlement amount.
In the consent order, SEBI said, ADAG chairman Anil Ambani, Rel Infra's vice-chairman Satish Seth, director SC Gupta, whole-time director Lalit Jalan and director JP Chalasani have remitted Rs25 crore, while RNRL and Anil Ambani have remitted Rs25 crore without admitting or denying the charges.
The case involves a probe into certain market "dealings" by the two ADAG companies, Rel Infra and RNRL. Both these companies along with some top group executives, including chairman Anil Ambani, were issued notices several times in the second half of 2010 to appear for personal hearing before the market regulator.
While SEBI, in its notice, did not clarify what "dealings" by RNRL and Rel Infra it was probing into, various agencies, including the Enforcement Directorate, have been investigating alleged irregularities in overseas debt instrument transactions by the two companies, way back in 2007.
Earlier in December 2009, Minister of State for Finance Namo Narain Meena told the Rajya Sabha that the Reserve Bank of India (RBI) has spotted end-use violations in two external commercial borrowing transactions of $360 million and $150 million, by RelInfra. The company invested the proceeds in debt mutual funds, pending declared end-use utilisation, in gross violation of existing guidelines, the minister said in a written reply in the Rajya Sabha.
Dr KM Abraham and Prashant Saran, both whole time directors of SEBI, in an order issued on Friday, also asked RNRL and RelInfra to implement a policy of rotation for their statutory auditors and not to re-appoint the same auditors for FY2011. SEBI said its order is without prejudice to its right to initiate enforcement actions, including reopening of the proceedings pending against the individual applicants and the companies, if any information provided by them is found to be untrue or the applicants breach any consent terms.
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What is the source of 50Cr no body knows , where were the funds used, nobody knows. Is Mr.Anil getting desperate to come out of sick companies either way ... fair or unfair. Sounds spooky to me. I have been an Anil fan since years .. but now loosing confidence as all the companies in ADAG are the turning are turing RED and bleeding . I wish they would have never split at least the companies were in good health then, or may be now they are in honest hands and showing correct pictures unlike earlier .. I am heck of confused with these two bros ....
Mr.Ambani has chosen to go for a settelment rather than going in for a prolonged legal battle which would be time consuming and expensive too. It makes business sense to focus on one's business . The stock markets have already over reacted on his stocks. The Companies have not paid any amount. This penalty payment would ensure he sets his house in order.
The media has widely covered the SEBI settelment and SEBI too has closed the issue. It would be best to let him carry on with his business instead of hounding him day after day.
He has very well clarified the issue in his press meet on December 16, 2011
You should be happy they speak the truth. If they believed that Anil Ambani or his companies gave up Rs 50 crore out of love and affection for SEBI and without bargaining really hard to avoid the payment, you still haven't learnt how the system works.
Why are you posting this pro ambani stuff?
Couldn't one argue that one manchanda was foolish and allowed kotak to cheat him, why take up the case? let him try and earn it back by some hard work.
isnt that a fair thing to ask?
Who is disputing that Money Life is not speaking the truth ??? Money life is reporting the news for it's readers. Money life has not passed any comments on this " Anil Ambani " episode.
Money Life has given this effective platform for expressing one's views. I have posted on this site the effective and important role played by Money Life in my issue and expressed my gratitude. How come you are making such absurd remarks.
you have your opinion which you are free to express on the Anil Ambani case. Is every body bound to have the same views ? If a financial impropriety been commited they have been fined by the regulator. The markets have hammered the group stocks bringing down the market cap by Rs.6500 crores in one single day. What else do you expect ?
The Anil Ambani group has 11 million share holders .They directly and indirectly provide employment to lakhs of people. They generate wealth for the country for their share holders and for themselves. Through mobile telephony they have linked the Remotest villages with the Cities. They are building power projects to take care of critical power requirements.They are building sea links, expressways, metro's creating world class infrastructure. If you run such a vast business empire chances are that you may make mistakes. The same rule / regulation can be interpreted differently by different people.
Want to play safe ? dont do business just put your money in Fixed deposit. Do nothing and you will break no rules.
One must learn to appriciate " THE NATION BUILDERS. "
scroll down and check question about sonata and Indage. Since you are clearly ADAG sorry Reliance PR .. answer that one for us
http://125.18.26.195/consentorders/relin...
The offense is in deed so very serious, there ought to have been no "settlement" of any sort, but warrant a stiff penalty - the maximum laid out by the law. This 'settlement' allows them with blue murder - a serious economic crime!
EFEP IS ENTRY ON FUNDAMENTALS AND EXIT FOR PROFIT with out reasons attachment.
Is SEBI an extortionist?