Reliance Communications (RCom) and Reliance Industries (RIL) were the top losers among Sensex stocks on Thursday, after a research report by Canada-based equity research firm Veritas made damning accusations against their managements.
In a report dated July 18 posted on its website, Veritas Investment Research claimed it had picked many holes in accounting and corporate governance practices of the two companies relating to the demerger of and listing of Reliance's telecom business in 2005 and 2006, respectively.
The 50-page report claimed that minority shareholders lost out big time.
While RIL did not want to comment on the issue, the RCom spokesperson said the company wanted to take "legal action against Veritas in Canada, India and elsewhere against publication of any part of the false and defamatory comments in the report."
Veritas, the spokesperson said, was an "unknown organisation lacking any credibility whatsoever, and it has, for ulterior and dishonest motives, published a malicious and motivated report containing baseless allegations, masquerading as research".
The company said "the language of the report, and the
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