SEBI seeks data on Reliance board meeting decisions

By Our Corporate Bureau | 06 Jan 2005

Mumbai: The Securities and Exchange Board of India (SEBI) has asked Reliance Industries for a detailed briefing of the decisions taken at various board meetings in the last couple of years and specifically to classify the various decisions the company thinks are of a price-sensitive nature.

"We have already received some information from them and are waiting for more information," top SEBI officials said yesterday.

Last month, SEBI had asked stock exchanges for price movements of the various listed companies of the Reliance group.

Based on preliminary data received, SEBI is now seeking more information on board meetings held in the last two years and the decisions taken.

The regulator wants to compare this information with the various disclosures that have come out in the media in the last one-and-a-half months.

SEBI has asked Reliance to reply whether there was any violation of the listing agreements, and whether the board decisions were disclosed to the exchanges in a timely manner. Importantly, SEBI has also called upon Reliance Industries to explain some changes in the company's shareholding pattern.

"Since there have been allegations of changes in promoter holdings made by a member of the promoter group, we cannot ignore that angle," a SEBI official said.

Sources also said current events indicated that the board discussed issues that were not on the official agenda of the board meetings.

"Letters have also been written within the promoter group, which in hindsight, appear to be of a price-sensitive nature," sources said, pointing out that they had to have enough evidence in order to establish any violation.