Reliance Group has announced that the company will take legal actions against L&T Finance and Edelweiss group after the Anil Ambani group entities lost more than a third of their market value within the period of five days.
Reliance Power Ltd. in its regulatory filing said, “The board of directors has recommended and approved that the company shall take all appropriate legal steps to protect and enhance the value of all its stakeholders, especially more than 31.75 lakh retail shareholders.”
Earlier Reliance Infrastructure Ltd accused the NBFC in a statement, quoting, “The Board of Directors of Reliance Infrastructure Limited met today, to review the events of last week, leading to a sharp fall in market capitalization and destruction of wealth due to illegal, motivated and unwarranted actions of L&T Finance Limited impacting its over 8 lakh shareholders.”
Reliance Capital Ltd also said their boards had approved legal measures. The Anil Ambani led group alleged that open market selling by L&T Finance Ltd. and Edelweiss Group is illegal on several counts, including price manipulation, insider trading, front running and market abuse and is in violation of various regulatory provisions provided by the SEBI.
It is reported that the non-banking financial companies sold 31.9 crores pledged shares of the four companies in the open market which led to a 3-8 percentage-point reduction in founders’ stakes in these firms.