No Sebi ban on me or my firms,settlement was voluntary: Ambani

Posted By: Pti
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Mumbai, Jan 16 (PTI) Anil Ambani today claimed that histwo group firms -- Reliance Infra and RNRL -- settled the Sebiprobe voluntarily and the regulator has not imposed any ban onthe companies or their directors from participation in thecapital market.

Contesting media reports that Sebi barred two group firmsand its directors from dealing in the capital market, Ambanitold reporters, "Sebi has not banned R-Infra, RNRL, AnilAmbani, other directors from capital markets or from stockmarkets."

"Sebi has placed no restrictions on raising of equity anddebt resources by any Reliance ADA Group company orindividual... the matter has been settled through voluntaryconsent proceedings as stated in the Sebi order," he said.

Ambani''s clarification comes in the wake of Sebi passinga consent order on Friday to settle a probe into the allegedviolation of regulations for foreign investment and unfairtrade practices by Reliance Infra and RNRL.

The terms include payment of Rs 50 crore as settlementcharges, which have been paid by the directors without anyfinancial burden on the companies involved.

Furthermore, the two companies, their Chairman AnilAmbani and four other directors offered to abstain from anyinvestment in listed stocks subject to certain conditions,according to the Sebi order.

While R-Infra and RNRL cannot invest in the secondarymarket till 2012, Chairman Anil Ambani and the other directorswill not do so till December, 2011.

However, the debarment of companies and officials doesnot apply to investments in mutual funds, primary marketissues, buybacks and open offers.

The other officials named in the order include RelianceInfra Vice Chairman Satish Seth and three directors -- S CGupta, Lalit Jalan and J P Chalsani.

The case relates to a probe by Sebi into dealings in theshares of another Anil Ambani group firm RelianceCommunications and alleged violation of foreign investment andunfair trade practices norms by R-Infra and RNRL.

"In accordance with Sebi consent mechanism, thesettlement is without admission or denial of guilt. Settlement(was) made in interests of investors to preempt unnecessaryand time-consuming litigation," Ambani said.

Sebi had also said the consent order was withoutprejudice to its right to initiate enforcement action,including reopening of the proceedings pending against theentities if any of its terms were breached or any of therepresentations made before it were found to be untrue.

Asserting that Reliance Power (since RNRL has merged withRPower) will be India''s largest power generation company, witha market cap of over Rs 40,000 crore already, Ambani said thecompany retains the full financial flexibility to raiseresources and implement its growth plans. .

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