Shares of Reliance Power Ltd and Reliance Infrastructure Ltd came under focus on Tuesday following show cause notices issued by the Securities and Exchange Board of India (SEBI) regarding alleged violations under SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, read with the SEBI Act, 1992. Both companies have submitted official replies clarifying their positions.
Reliance Power, in a filing to the Bombay Stock Exchange, said it received a show cause notice from SEBI related to Reliance Infrastructure Limited’s exposure in CLE Private Limited (CPL). The company emphasized that it has no exposure to CPL and would take appropriate steps in the matter, as legally advised.
Reliance Infrastructure also filed a statement noting that the company had disclosed on February 9, 2025, that the dispute with CPL had been settled through consent terms filed before the Mediation Centre, Hon’ble Bombay High Court, in compliance with the Mediation Act, 2023. The notice from SEBI, the company said, came after eight months, despite the matter having been fully resolved. 
According to Reliance Infra, the settlement transferred assets and economic interests in CPL worth Rs 5,777.13 crore to the company, while Rs 726 crore, the decreed amount, was converted into a secured loan. The consent terms under Mediation Application No. 181/2023 fully resolved all outstanding disputes and claims between Reliance Infrastructure and CPL, totaling Rs 6,503.13 crore.
The companies reiterated that the settlement had been implemented in full compliance with legal provisions and that they would follow all necessary steps to address SEBI’s concerns. Market analysts noted that the clarification helped ease immediate investor concerns, although the notices prompted short-term volatility in the shares of both companies.
