BSE, NSE seek explanation from RNRL

Stock market authorities have sought explanation from the Anil Ambani group firm Reliance Natural Resources (RNRL), whose share price has nearly doubled in the past few days, on media reports about its business plans.

Both the Bombay Stock Exchange and the National Stock Exchange brought the company under scanner last week and early this week to ascertain if the price movement was normal.

From Rs 52 at close on September 19, the share price hit a one-year high of Rs 103 during trading on September 25, although it ended down at Rs 94.85 that day.

There have been media reports that it plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.

NSE wrote to company officials on September 21 after reports that it plans to start CGD projects in various cities. The company's share price surged by a whopping 35 per cent that day to settle at Rs 76.70 from Rs 56.80 a day ago.

The scrip soared another 22 per cent on September 24 to Rs 93.55. Incidentally, there is no circuit filter on the scrip.

Similarly, turnover rose to a whopping Rs 673.47 crore on September 21 when more than 9.5 crore shares changed hands. This was against Rs 136.5 crore in the previous day when only 2.4 crore shares were traded. On September 24, it recorded a turnover of about Rs 457 crore.

The company informed the bourses on September 24 that its affiliate firm Reliance Fuel Resources Ltd did submit an application to the Petroleum Ministry for setting up such projects in Mumbai, Delhi and the national capital region.