Sebi board takes up IPCL stake sale

Sebi terms Anil Ambani's refusal to sign the RIL accounts as "unprecedented".

The Securities and Exchange Board of India (Sebi) at its board meeting today discussed Reliance Capital Ltd's sale of its equity in Indian Petrochemicals Corporation Ltd (IPCL) to other Reliance group companies.

The Sebi board also discussed the issue of Reliance Industries Vice-Chairman and Managing Director Anil Ambani's refusal to sign the Reliance Industries Ltd (RIL) accounts, terming it "unprecedented", sources said. There was no official Sebi confirmation on this.

The Sebi board discussed the issue of whether the sale of Reliance Capital's stake in IPCL to Reliance group outfits had in any way triggered the provisions of Sebi's Substantial Acquisition of Shares and Takeover Regulations (SAST), sources said.

The board had met to review the market situation and finalise its accounts for 2004-2005, but also discussed issues concerning the Reliance group that hit the headlines recently.

Dwelling on Anil Ambani not signing the final accounts of RIL, the Sebi board termed it "unprecedented". Ambani had refused to sign the RIL accounts for the year ended March 31, 2005, citing the lack of relevant information, details and disclosures. But no decision was taken by the board on these issues at the meeting, sources added.

Emerging from the board meeting, Sebi Chairman M Damodaran refused to speak to the waiting media, saying: "There is nothing to brief you about today's meeting."

Other Sebi members also echoed Damodaran's comments. Sebi sources described the meeting as routine and said it was convened only to review the market situation. No other item was on the agenda, they added. The board reviewed the developments in the cash and derivatives market as well, sources said.

Adds PTI: The Securities and Exchange Board of India (Sebi) is keeping close watch on the scrips of RIL in the light of allegations made by Anil Ambani about the breach of corporate governance norms in RIL.

"Sebi keeps everything under surveillance," chief economic advisor and government representative on Sebi board Ashok Lahiri told reporters in Mumbai today before the beginning of its board meeting.

"If anything comes up in surveillance Sebi will look into the matter," Lahiri said when asked what steps the capital market watchdog is taking on the alleged breach of governance norms in RIL.