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Anil's letter may have led to SEBI action

January 10, 2005 19:18 IST

Market regulator SEBI's conditional clearance to Reliance Industries programme for buyback of shares may have been prompted by a letter written by RIL vice chairman Anil Ambani late last month.

After abstaining from voting on the buyback issue at the crucial Board Meeting on December 27, Anil, engaged in a bitter battle with his elder brother Mukesh, shot off a letter to Securities and Exchange Board of India seeking "full and fair" disclosure of details relating to various issues to protect the interest of over 30 lakh RIL shareholders.

Sources said Anil wanted SEBI's intervention for disclosure covering at least five points including RIL Chairman Mukesh's statements relating to ownership issues on November 16 and November 22, that triggered the proxy war between the two brothers.

The Reliance 'ownership issue'

When contacted, spokesperson of Anil Ambani declined to comment on any of the issues including letter written to SEBI.

Sources said Anil had asked SEBI to seek disclosure on potential conflict of interests of Nimesh Kampani as trustee of Petroleum Trust, which holds 7.5 per cent RIL equity, and as Chairman and Managing Director of J M Morgan Stanley, the manager of the buyback.

Anil also requested the market watchdog for disclosure on the 7.5 equity held by the Trust and another 4.7 per cent stake with the four companies, which RIL disclosed as "persons acting in concert" saying these 12 per cent stake belonged to RIL shareholders.

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