SEBI Notice Overview

The Securities and Exchange Board of India (SEBI) has issued show cause notices to Reliance Infrastructure and Reliance Power over alleged breaches of SEBI regulations, specifically under the Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003, read with the SEBI Act, 1992.

The matter is connected to CLE Private Limited (formerly Crest Logistics and Engineers Pvt. Ltd.), which had prior business dealings with the Reliance group.

Reliance Infrastructure’s Response

Reliance Infrastructure stated :

• The dispute with CLE was settled on February 9, 2025, through mediation filed with the Bombay High Court, in compliance with the Mediation Act, 2023.

• The company asserts that the settlement has been fully implemented.

• Reliance Infrastructure will take legal steps, as advised, to respond to SEBI’s notice.

Reliance Power’s Response

Reliance Power clarified :

• It has zero exposure to CLE Private Limited.

• The company will also pursue legal remedies, as advised, to address the SEBI notice.

Market Reaction

Following the news :

• Reliance Infrastructure shares fell 2.47% intraday.

• Reliance Power shares declined 0.88% intraday.

The market reaction reflects investor caution amid regulatory scrutiny, even though both companies have indicated proactive legal responses.

Outlook

Analysts suggest that the SEBI notices may lead to clarifications or hearings, but given Reliance Infrastructure’s prior settlement and Reliance Power’s lack of exposure, the impact may be contained. Legal proceedings and SEBI communications in the coming weeks will be key to monitoring investor confidence and potential market movement.

Key Takeaways

• SEBI issued show cause notices to Reliance Infrastructure and Reliance Power.

• Matter relates to CLE Private Limited.

• Reliance Infrastructure claims the dispute was already settled via court-filed mediation.

• Reliance Power reports zero exposure.

• Shares of both companies declined in intraday trading.