R-Infra, RNRL voluntarily settle with SEBI

The Reliance Anil Dhirubhai Ambani Group (ADAG) group on Saturday said stock market regulator SEBI has not imposed any bar on its two group companies from investing in the stock market and the matter has been settled with the market regulator through voluntary consent.

Reliance Infrastructure (R-Infra) and Reliance Natural Resources Limited (RNRL) have settled the Securities and Exchange Board of India (SEBI) probe through voluntary terms proposed by them, ADAG said.

There were reports that the two ADAG companies have been barred from investing in stock market along with ADAG chairman Anil Ambani because they raised money through external commercial borrowings and/or foreign currency convertible bonds in violation of rules.

“There is no bar or ban imposed by Sebi on the company and its directors. The matter has been settled through voluntary consent proceedings, as stated in SEBI order,” a Reliance Infrastructure spokesperson said in a statement.

Under the settlement while R-Infra and RNRL and its directors cannot invest in secondary market till 2012, Chairman Anil Ambani and other directors would not do so till Dec this year.

The spokesperson said: ?Voluntary decision to not make investments in listed securities in secondary market (till next year by Company, and this year by Directors) is to conserve resources for investment in own substantial projects, and will not impact growth prospects in any manner.?

He said: ?This does not apply to investment in mutual funds, primary issuances, buyback and open offers.?

?Reliance Infra has voluntarily settled SEBI show cause proceedings of June 2010 against the Company and its Directors. In accordance with SEBI consent mechanism, the settlement is without admission or denial of guilt,? he said.

?Settlement has been made in the interests of investors to pre-empt unnecessary and time-consuming litigation,? he said.

The spokesperson said the settlement maintains full financial flexibility of the Company to implement its growth projects.

?Order contemplates inter alia payment of settlement fees of Rs. 25 crore jointly and severally by Company and Directors,? he said.

?Directors have voluntarily made payment of entire settlement fees, with no burden on Reliance Infra,? he said.