The Securities and Exchange Board of India has disposed of a complaint against the initial public offer by Anil Ambani-promoted Reliance Power Ltd by asking the promoters to lock-in the entire 20 per cent of their contribution to the share offer for five years.
The Sebi order clears the hurdles ahead of the mega IPO of $2.5 billion to $3 billion, which is expected to hit the markets early next year.
The regulator said the complainants' argument was with respect to shortchanging shareholders of Reliance Energy rather than RPL and REL shareholders could take up the matter with the ministry of corporate affairs.
A complaint alleged breach of corporate governance in the case of REL for the transfer of high-value projects like Rosa Power, Sasan Power, Butibori, Shahpur Coal, Dadri etc to RPL, owned by REL and Anil Ambani through different companies.
The complaint by Rajkot Saher/Jilla Grahak Surakha Mandal, had alleged that the proposed IPO was being used by the promoters to "subvert the spirit" of the rules to gain "huge benefits using several front companies and by means of merger and amalgamation."
Sebi, which heard both parties on December 4, said it has no jurisdiction to take action or conclude a finding on this front.
