Reliance Infrastructure seeks ASM review; ₹77.86cr lien

Why Reliance Infrastructure is in focus

Shares of Reliance Infrastructure Ltd (RInfra) were in focus on Monday morning after the company submitted a formal representation to the Securities and Exchange Board of India (SEBI), the National Stock Exchange (NSE) and BSE, seeking a review of the surveillance framework linked to the Insolvency and Bankruptcy Code (IBC).

The company’s request centres on the Additional Surveillance Measure (ASM) framework and the trading restrictions currently applicable to its stock. Reliance Infrastructure said these restrictions have had an adverse impact on more than 7 lakh public shareholders.

In a separate development that also kept the stock in the news, Reliance Infrastructure confirmed a lien in the company’s bank accounts amounting to ₹77.86 crore and said it will file an appeal challenging the order.

What the company asked SEBI, NSE and BSE to change

Reliance Infrastructure said it has sought a review of the ASM framework and related trading restrictions on its shares. The company emphasised the need to ensure that market mechanisms continue to facilitate fair price discovery and maintain investor confidence.

The company argued that continuation of what it described as “anomalous and artificial trading restrictions” is counterproductive to the interests of its public shareholders and undermines the efficient functioning of the market.

According to the company, the restrictions have an uneven impact on public shareholders, particularly retail investors, who may not be able to exit during lower-circuit phases at a reasonable market price.

The key restriction: once-a-week trading with a ±5% band

Reliance Infrastructure stated that the current framework permits trading only once a week and within a narrow ±5% price band. It added that this structure results in price movements that are largely mechanical and predictable.

The company said such price action may not adequately reflect prevailing business fundamentals, operational performance, or long-term value creation potential.

It also said the impact of these restrictions falls disproportionately on public shareholders because, during lower-circuit phases, the value of holdings can erode by a near-fixed percentage each week while shareholders remain constrained in their ability to sell.

What happened to the stock recently

The stock has seen sharp movement in a short window. A Marathi-language update in the provided material said the share hit consecutive upper circuits for about a week and delivered more than 28% returns over seven trading sessions.

At the same time, other exchange data cited in the material described a longer period of weakness, with the stock down nearly 40% over the past year and about 57% in the last six months, amid ongoing legal and regulatory challenges.

This combination of steep longer-term declines and bursts of short-term price action helps explain why the stock remains under enhanced surveillance measures.

Surveillance measures: ASM, GSM and IBC-linked monitoring

According to the material, the stock’s inclusion under the ASM framework is described as a precautionary step to monitor unusual price movements and safeguard investor interests.

Separately, Reliance Infrastructure shares have also been described as being under the Graded Surveillance Measure (GSM) framework and placed under IRP: Stage 0 due to ongoing proceedings under the Insolvency and Bankruptcy Code (IBC).

Reliance Infrastructure’s representation seeks a review of the insolvency-related surveillance framework under which trading in the company’s stock is allowed only once a week.

Wider regulatory and investigative backdrop around the group

The provided material also referenced fresh scrutiny of Anil Ambani-led Reliance Group companies. In one reported market move, Reliance Infrastructure plunged 5% to a 52-week low of ₹184.05, while Reliance Power fell 5.4% to ₹38.52 on the BSE, after news that the Serious Fraud Investigation Office (SFIO) launched a fresh probe against the conglomerate.

The same material stated that at least four Reliance Group companies were under direct SFIO scrutiny: Reliance Infrastructure, Reliance Communications (RCom), Reliance Commercial Finance Ltd (RCFL), and CLE Pvt Ltd.

It also cited earlier probes by the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and SEBI, examining alleged violations of corporate governance norms and diversion of funds across group entities.

ED case details cited in the reports

Another reported development cited sources quoted by PTI saying Anil Ambani was asked to appear before the ED on November 14 in connection with a money laundering probe linked to alleged bank loan fraud at State Bank of India (SBI).

The material also stated that the ED announced provisional attachment of assets worth ₹4,462 crore allegedly linked to the Anil Ambani Group under the Prevention of Money Laundering Act (PMLA). The attached assets were said to include 32 acres of land at the Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai.

Reliance Infrastructure also reiterated in the provided content that Mr. Anil D. Ambani has not been on the company’s board for over three-and-a-half years, and that any actions related to him have no bearing on the company’s governance, management, or operations.

SEBI show cause notices and the ₹6,503 crore settlement reference

The material also referenced that Reliance Power Ltd and Reliance Infrastructure Ltd received show cause notices from SEBI. The notices relate to alleged fraudulent practices in financial dealings, specifically concerning a ₹6,503 crore settlement between Reliance Infrastructure and CLE Private Limited (formerly Crest Logistics and Engineers Pvt. Ltd.).

It said SEBI issued the notices under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and is questioning the transparency and legality of the transactions, seeking clarification on the settlement process and compliance.

Following these notices, the material reported that Reliance Infrastructure and Reliance Power declined by 2.4% and 2.2%, respectively, on a day when the BSE Sensex rose 0.7%.

Key facts at a glance

Market impact: price discovery versus investor protection

Reliance Infrastructure’s submission frames the restrictions as a price discovery issue, arguing that once-a-week trading within a ±5% band produces mechanical price movement that may not track fundamentals.

From a market-structure perspective, the company is effectively asking regulators and exchanges to reconsider whether the current ASM approach, as applied under an insolvency-linked framework, balances investor protection with the ability of shareholders to transact.

The stock’s recent pattern described in the material, including both sharp short-term moves like upper circuits and large longer-term declines, shows why surveillance measures have remained in focus.

What to watch next

Reliance Infrastructure has said it will file an appeal challenging the order connected to the ₹77.86 crore lien.

On the trading side, investors will track whether SEBI, NSE and BSE respond to the company’s formal representation and whether there is any change in the ASM framework or the once-a-week trading restriction.

Conclusion

Reliance Infrastructure’s representation to SEBI, NSE and BSE puts the spotlight on how IBC-linked surveillance measures affect liquidity and price discovery, especially for a shareholder base of more than 7 lakh. The company’s planned appeal against the ₹77.86 crore bank lien is the next formal step disclosed so far, while markets await clarity on any review of the current ASM restrictions.