Rel Infra, RNRL pay settlement fee of Rs 50 cr to SEBI

The Securities and Exchange Board of India (SEBI) has passed a consent order regarding the Reliance Infrastructure and RNRL investigation that showed misrepresentation of investments. 

Reliance Infrastructure, RNRL, Anil Ambani and four other directors have paid a settlement fee of Rs 25 crores towards the consent order. Post this order, Reliance Infrastructure and  RNRL will be unable to make any investment in the secondary markets upto December 2012, while Anil Ambani and the four directors have been barred from investing in the  secondary market until December 2011.

These restrictions do not include primary issues, buybacks or open offers the regulator said. 

Also, SEBI warned that it could re-open the proceedings if the consent to the terms are breached.

Not guilty, says Reliance Infra

Reliance Infrastructure spokesperson clarified that the company had voluntarily settled the SEBI notice against company and that the settlement with SEBI was not an admission of guilt.

The spokesperson further said that the settlement was made in the interest of its investors so as to pre-empt unnecessary and time-consuming litigation.