Mumbai: Markets regulator Securities and Exchange Board of India (Sebi) has initiated a forensic audit of Reliance Power Ltd in connection with alleged violations of securities and corporate laws, the company said in a regulatory filing on Tuesday.
In a disclosure under Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, Reliance Power said the forensic audit relates to alleged breaches of the Sebi Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the Companies Act, 2013.
The company did not provide details on the specific nature or period of the alleged violations. It also did not disclose the scope, timeline or the audit firm appointed by the regulator for conducting the forensic examination.
Reliance Power, part of the Anil Ambani-led Reliance Group, has been under financial stress over the past few years amid high debt and weak cash flows in the power generation sector. The Sebi action adds to regulatory scrutiny at a time when the company has been working on debt reduction and resolution of legacy issues.
The company said it has informed the stock exchanges of the development and will comply with regulatory requirements as the process progresses. Further updates will be made in accordance with applicable disclosure norms, it said