New Delhi: The government on Wednesday said the share prices of Reliance Group companies moved up by up to 37 per cent in about a month before the opening of Reliance Power IPO, but subsequent examination of trading of these shares on exchanges did not reveal any foul play.
"The prices of shares of Reliance Group companies have moved up within the range of 8.1 per cent to 36.94 per cent during December 17, 2007-January 14, 2008," Minister of State for Finance Pawan Kumar Bansal informed Rajya Sabha on Wednesday.
The IPO had opened on January 15 and closed on January 18.
Bansal was replying to a question from Rajya Sabha MP M V Mysura Reddy of TDP, who had asked whether the share prices of Reliance Group companies exorbitantly increased before the public issue of Reliance Power, and whether the government has taken up any investigation in the matter.
In his written reply, the minister said SEBI initiates investigation when there is a suspicion that price may have been manipulated.
"The examination of trading on exchanges in these shares did not reveal any significant concentration among the market participants," he said.
"The increase in prices of shares of Reliance Group companies indicates notional gain for all investors, including small investors," Bansal said on possible losses to small investors.
In reply to another query, the Minister said SEBI has received 2,261 grievances from investors against the company relating to non-receipt and delay of refund, credit of shares and non-receipt of interest till March 3, which have been transmitted to the company for necessary action.
To a separate question, he said 19 nationalised banks, including SBI, and 16 insurance companies had invested Rs 620 crore in the IPO of Reliance Power.
He said SEBI has not ordered any inquiry into the market movement on January 22. On January 22, stock market benchmark Sensex closed 875 points down at 16,730 points, after falling more than 2,000 points during the day.
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