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Show cause notice to ADAG from SEBI
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 1/20
Show cause notice to ADAG
from SEBI
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 2/20
What is show cause notice??? A show cause order.
Issued for civil actions
Defend the charges made against him by explanations
and reasons by writing and as well as personal hearing.
Issued after the oral warning
The first record of legal action from the company side
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 3/20
Specimen of Show Cause Notice
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 4/20
RELIANCE - ADAG
Top three private sector
Market capitalisation of Rs.325,000Cr. (US$ 81 billion)
Net assets in excess of Rs.115,000Cr. (US$ 29 billion)
Net worth to the tune of Rs.55,000Cr. (US$ 14 billion)
Customer base of over 100 million
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Contd...
A shareholder base of over 12 million
Business in 20000 towns and in 4.5 lakhs villages in
India, and 5 continents across the world.
Business Areas - communications (Reliance
Communications) and financial services (RelianceCapital Ltd), to generation, transmission and distribution
of power (Reliance Energy), infrastructure and
entertainment.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 6/20
ADA Group of Companies
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 7/20
Reliance Infrastructure
The largest private sector player in many other
infrastructure sectors of India.
The company is focused on roads,
Urban infrastructure , Real Estate,
SEZ .
28 billion units of electricity to
cover 25 million consumers.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 8/20
RNRL
Gas Based Energy Resulting Company.
Incorporated on the March 24, 2000, under the
Companies Act, 1956 as Reliance Platforms
Communications.Com Private Limited.
Having business of sourcing, supply and transportation
of gas, coal and liquid fuels.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 9/20
Board of Directors:
Shri Anil D. Ambani - Chairman
Shri Anil Singhvi - Vice Chairman
Shri S.L Rao
Shri Bakul Dholakia
Shri J L Bajaj
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 10/20
News
SEBI has issued a show-cause
notice to two of Anil Dhirubhai
Ambani Group (ADAG)companies²Reliance Natural
Resources (RNRL) and Reliance
Infrastructure
Reliance Infrastructure¶s Vice
Chairman Satish Seth and directors
JP Chalsani, SC Gupta and Lalit
Jalan .
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 11/20
Contd«
Asked to submit replies by August 27
Appear before it for personal hearing on September 3.
What are Participatory notes?
An instruments that derive their value from an underlyingfinancial instrument such as an equity share and, hence,
the word, µderivative instruments¶
8/9/2019 Show Cause Notice to ADAG
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Contd«
Internal Trading
trading of a corporation's stock or other securities by
individuals with potential access to non-publicinformation about the company.
Purchase of participatory notes by Pluri.
Involvement of Pluri emerging companies, Hythe
Securities, Barclays Bank.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 13/20
Contd«
Fradulent transactions in Pluri emerging
companies, involving siphoning of funds from the
UBS London branch accounts of ADAG firms.
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Contd«
Funds were used to buy shares in India, money in these
accounts were for foreign loans and ECB¶s by ADAGfirms.
SocGen, a french financial group and Barclays Bank
have been barred from issuing fresh PN¶s.
8/9/2019 Show Cause Notice to ADAG
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Negative Terrain on ADAG Stocks
Knee-Jerk Reaction
RNRL plunging over 3 per cent
Shares of RNRL finished the day 3.3%
lower at Rs 39.55 after hitting a 52-week
low shedding 3.7% to Rs 39.35 during
the day on the BSE.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 16/20
8/9/2019 Show Cause Notice to ADAG
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Contd«
R-Infra lost 1.4% to a month's low of Rs 1,100 but later
recovered at Rs 1,120.05, up 0.31 per cent.(BSE).
Meanwhile, the 30-share benchmark Sensex ended at
18,114.83, up 0.19 per cent.
RNRL
fell by 1.34 per cent to an early low of R
s 40.35 inNSE
R-Infra declined by 0.77 per cent to Rs 1,108.
8/9/2019 Show Cause Notice to ADAG
http://slidepdf.com/reader/full/show-cause-notice-to-adag 18/20
Stocks of R-Infra
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http://slidepdf.com/reader/full/show-cause-notice-to-adag 19/20
Conclusion
The matter is sub-judice.
The concerned companies and
Directors will comply with SEBI.
Confident of suitable resolution
of the matter, as legally adviced.
8/9/2019 Show Cause Notice to ADAG
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Thank You
