Date:20/02/2008 URL: http://www.thehindubusinessline.com/2008/02/20/stories/2008022052051000.htm

Back Reliance Power alleges manipulation

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Mumbai, Feb 19

Reliance Power Ltd, which was listed on bourses below its offer price has, alleged that there has been pre-meditated manipulation of its shares.

RPL, an Anil Ambani group controlled company, has requested the market regulator SEBI to undertake an investigation into the movement of its share prices immediately after its listing.

The Reliance Power stock price opened at 9.55 am on February 11 at Rs 530 on NSE and Rs 547. 80 on BSE.

“ Within just four minutes of the opening, the Reliance Power price was brought down to Rs 395 on BSE and Rs 389.80 on NSE, a decline of over 26 per cent or an unprecedented nearly seven per cent every minute from the peak opening price” the company said.

The company has alleged that in several instances, the visible quantity of sale order was much larger that the traded quantity, leading to the suspicions that large quantities were displayed to create panic and then the quantities were withdrawn by cancelling or modifying the orders.

“All of this points towards a distinct possibility of pre-mediated manipulation of the Reliance Power order book to create a negative sentiment” the company said in a letter to SEBI.