Particle.news
Download on the App Store

Reliance Infrastructure Asks SEBI and Exchanges to Review Weekly Insolvency Trading Curb After Rs 77.86 Crore Lien

The company says exchanges triggered insolvency-linked surveillance despite an NCLAT stay and has proposed risk controls and alternate trading mechanisms to restore liquidity and fair price discovery.

Overview

  • Reliance Infrastructure submitted a formal representation to SEBI, NSE and BSE seeking review of the Additional Surveillance Measure that limits its stock to once-a-week trading within a ±5% band.
  • The firm says the ASM was applied despite the National Company Law Appellate Tribunal staying the insolvency admission order and that no resolution professional has taken control of the company.
  • In its filing the company argued the weekly, narrow-band trading rule creates mechanical price moves, traps liquidity and disproportionately harms more than 700,000 retail shareholders.
  • Reliance Infra confirmed an order placing a Rs 77.86 crore lien on its bank accounts in a FEMA matter, said it will appeal, and earlier ED actions that froze about Rs 55 crore remain on the record.
  • As an alternative to the once-a-week curb the company proposed keeping strict safeguards such as gross settlement, 100% margins and an additional surveillance deposit while using periodic call auctions or wider graded bands to enable two-sided trading.