Mumbai: The Bombay High Court rejected Anil Ambani led Reliance Group petition seeking relief against pledged share sale by Edelweiss Financial Services Group.
Anil Dhirubhai Ambani Group (ADAG) had moved the Bombay High Court seeking a stay on the sale of pledged shares of its three listed firms -- Reliance Power, Reliance Infra and Reliance Capital by Edelweiss Group.
On Tuesday, Reliance Power had asked the Securities and Exchange Board of India to immediately ban Edelweiss Group from the capital market, alleging “illegal and market disruptive activities” that caused a steep plunge in the company’s share price. It also asked Sebi to order an investigation into the sale of its pledged shares.
Last week, the Reliance Group had accused L&T Finance and Edelweiss Group entities of “illegal” and “motivated” actions in invoking the pledged shares of Anil Ambani group’s three listed firms and selling them in the open market causing a steep fall in share values.
L&T Finance and Edelweiss Group had refuted the allegations saying the sale of shares of Reliance ADAG Group companies was as per contractual rights and was legal. “As per loan and pledge agreements, borrower (Reliance ADAG Group) did not cure various events of defaults including providing margin for shortfall in the stipulated security cover. Despite various notices in the past few months, events of defaults continued. Consequently, L&T Finance enforced its rights of invocation and sold pledged shares to the extent of its outstanding dues by following the due process of contract and law,” said L&T Finance.
