Anil Ambani’s Reliance Infrastructure
There has been a tremendous rise in the shares of Anil Ambani’s company Reliance Infrastructure in recent times. This stock has risen by about 28 percent in the last seven trading days and is in the news due to continuous upper circuit. Meanwhile, the company has raised the demand for review of the special trading restrictions imposed on its shares. Reliance Infra has sent an official letter to SEBI, NSE and BSE requesting them to reconsider the existing system.
Reliance Infrastructure Limited has filed an official representation before the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE) and BSE. The company has sought a review of the Extra Surveillance Measures (ASM) related to the Insolvency and Bankruptcy Code (IBC) and trading restrictions imposed on its shares. The company says that under the current system, trading in its shares is allowed only once a week and even on that day a maximum fluctuation of 5 percent in prices is possible. According to the company, this affects the determination of the real market value of the share.
Cited the interests of investors
Reliance Infra said that it has more than seven lakh public shareholders and the current restrictions are directly impacting these investors. The company believes that such limits on trading affect the participation of investors and become an obstacle in determining the correct value of shares based on demand and supply. The company said in its representation that the objective of market regulation should be fair price discovery and maintaining investor confidence. In such a situation, continuing artificial restrictions for a long time cannot be considered in accordance with the normal functioning of the market.
Despite the rise, far below the old record
Although in recent times there has been a strong recovery in the shares of Reliance Infra and investors have got a return of about 28 percent in just one week, but from a long term perspective, this stock is still trading about 79 percent below its all-time high level. The company says that considering its current business performance, operational activities and future prospects, the restrictions imposed on the shares do not reflect the actual situation. Now the market will keep an eye on the decision of SEBI, NSE and BSE as to what stand they take on this demand of the company.
Also read- Even the big salaries in Mumbai are falling short! You will be shocked to hear the investment banker’s expenses.
