INSUBCONTINENT EXCLUSIVE:
on Saturday said they will take all appropriate legal steps against LT Finance to protect and enhance the value of their respective
stakeholders.The group companies which have decided to take independent legal recourse include Reliance Infrastructure, Reliance Capital and
Edelweiss Group, have invoked pledge of listed shares of Reliance Group and made open market sales of the value of approximately Rs 400
crore from 4.2.2019 to 7.2.2019.The market capitalisation of the three companies were badly impacted due to the open market sales
The three companies together have around 46.75 lakh shareholders.On Friday, Reliance Group said: "The purported exercise of rights to
illegal, motivated and wholly unjustified action by the above two groups has precipitated a fall of Rs 13,000 crore, an unprecedented nearly
55 per cent, in market capitalisation of Reliance Group over just these four days, causing substantial losses to 72 lakh institutional and
retail shareholders, and harming the interests of all stakeholders," the statement said.According to Reliance Group, the manner of conduct
of the above open market sales, without any orderly market disposal through a bid or structured process for shares comprising the holding of
the promoter group, is also illegal on several counts like price manipulation, insider trading, front running and market abuse.The Reliance
Group claimed the sale by LT Finance and others is in violation of various regulatory provisions, including the SEBI (Prohibition of
Fraudulent and Unfair Trade Practices) Regulations, which are applicable to all persons (including NBFCs) dealing in listed securities,
whether on invocation of pledge or otherwise.The statement said group company Reliance Communications (RCOM) has announced plans for debt
resolution through the National Company Law Tribunal (NCLT) and there was no adverse impact of this unrelated RCOM proposal on Reliance
Capital Ltd., Reliance Infrastructure Ltd
and Reliance Power Ltd.As per the statement, Reliance Capital Ltd., Reliance Infrastructure Ltd
(and their various subsidiaries) are performing satisfactorily on all operating parameters, and there is no change whatsoever on any aspect
as compared to the position prevailing prior to these sales.On its part LT Finance on Friday refuted and denied allegations it had granted
loans against pledge of shares to Reliance Group companies."As per loan and pledge agreements, borrower did not cure various events of
defaults including providing margin for shortfall in the stipulated security cover
