Anil Ambani’s Reliance Power and Reliance Infra Stocks Fall After SEBI Issues Show Cause Notices Over Alleged Trade Violations

Shares of Anil Ambani’s Reliance Power and Reliance Infrastructure fell by 1% and 2% respectively after both companies received Show Cause Notices from the Securities and Exchange Board of India (SEBI) over alleged violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and the SEBI Act, 1992.  Reliance Infrastructure and Reliance Power shares were trading in the red in the morning following the companies' disclosures that were made last night. Last seen, Reliance Infrastructure stock was trading 2.36% lower at ₹238.50 on the NSE, while Reliance Power was down 1.19% at ₹44.81.

In its regulatory filing, Reliance Infrastructure said the show cause notice pertains to its exposure to CLE Private Limited. However, the company noted that SEBI’s notice comes nearly eight months after the resolution of a dispute with CLE Private Limited.“The settlement with CLE Private Limited has already been concluded and stands fully implemented in terms of the Mediation Act, 2023. The Company shall take appropriate steps in the matter, as legally advised,” Reliance Infrastructure said.

Another group company, Reliance Power, also received a show cause notice in connection with Reliance Infrastructure’s exposure to CLE Private Limited. However, it clarified that it has “zero exposure” to the entity.“The Company has ZERO exposure to CLE Private Limited. The Company shall take appropriate steps in the matter, as legally advised,” Reliance Power said in its BSE filing.The share price of Reliance Infrastructure has seen a significant decline in the past few months, losing 23.93 per cent so far this year.The share price of Reliance Power has inched up marginally in the past few months, rising only 1 per cent so far this year and 15.79 per cent in the last six months.

Both Reliance Infrastructure and Reliance Power are part of the Anil Dhirubhai Ambani Group (ADAG). Reliance Infrastructure (RInfra) is an infrastructure company focused on Engineering & Construction (E&C) and utilities, while Reliance Power (RPower) is a power generation company. RInfra handles project development and provides E&C services across infrastructure like roads and metro rail, also serving as a utility with transmission and distribution operations.Reliance Power focuses on developing, building, and operating power plants and has a significant portfolio of thermal and renewable energy assets.