Anil Ambani says investment ban self-imposed

Anil Ambani says investment ban self-imposed

Mumbai: Two days after the Securities and Exchange Board of India, or Sebi passed a consent order in a case, of alleged routing of money raised overseas to the Indian stock market against a couple of Reliance Group (earlier known as Anil Dhirubhai Ambani Group) companies and their directors, its chairman Anil Ambani stated that the terms of consent, including staying away from the secondary market was self-imposed and criticized the media for calling it a ban.

At a press conference he called on Sunday, Ambani called the media’s reportage of the issue “totally false, highly defamatory and detrimental to the interests of our 11 million shareholders."

The consent order passed on Friday settled the case Reliance Infrastructure Ltd (R-Infra) and Reliance Natural Resources Ltd (RNRL) and their directors, including Ambani for a total fee of Rs50 crore and undertakings on the part of the companies not to invest in listed shares in the secondary market till December 2012, and their directors committing to stay away from the same till December 2011.

Ambani said that the order would have no impact on the stated companies’ fund-raising plans or any potential merger and acquisition activity as Sebi has allowed them to invest in primary issues, mutual funds, buybacks and open offers.