SEBI acts on Anil Ambani & Co.

Mumbai, Jan 15: The Securities and Exchange Board of India (SEBI) has asked Anil Ambani along with four board members of Reliance Natural Resources Limited (RNRL) not to invest in publicly-listed securities till Dec 2011. The four board members of the group are Satish Seth, Lalit Jalan, SC Gupta and JP Chalsani.

The SEBI direction will be applicable to RNRL and Reliance Infrastructure barring any sort of investments in the secondary market for a period of two years, ie..till December 2012.

This move was following SEBI's probe of certain market dealings by the two companies. The investigations revealed that the funds raised by Anil Dhirubhai Ambani group companies through external commercial borrowings/foreign currency convertible bonds had been diverted to invest in stock markets.

SEBI also divulged that Reliance Infrastructure and RNRL, both companies which have now been merged with Reliance Power holds responsibility of misrepresenting investment source and fiddling with the profits and losses accounts in their annual reports for the years 2006-07, 2007-08 and 2008-09.

SEBI has slapped Reliance with charges of violating SEBI norms and using unfair trade practices in relation to securities market regulations.

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