Reliance Industries-ETV deal under regulatory scrutiny - report

Jan 16, 2012 |

Reuters

mumbai

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The Securities and Exchange Board of India (SEBI) is examining a plan by energy major Reliance Industries to sell part of its stake in Eenadu Group's ETV channels to Network18 over potential disclosure issues, the Mint financial daily reported.

The stock market regulator is examining whether Reliance adequately disclosed its original purchase of the channels, which it plans to sell to Network18 as part of a financing deal with the broadcaster, the report said.

By financing a rights issue by Raghav Bahl's Network18, Reliance will gain access to channels for a planned 4G service.

Reliance said it had invested about 26 billion rupees in Eenadu Group's regional TV channels when it announced the deal with the TV18 group's Network18 on January 3.

Reliance holds a 100 percent economic interest in five ETV regional news channels and five ETV general entertainment channels, the Mint report said. It also owns a 49 percent economic interest in ETV Telugu and ETV Telugu News.

Under listing agreements, a company must immediately inform the stock exchange of all the events that are material- and price-sensitive. A Reliance Industries spokesman declined to comment.

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