The union government examining the allocation of 10 million Reliance Infocomm shares to three unlisted firms at the rate of Re 1 each.

The union government has said that it is examining whether any law was violated in the allocation of 10 million Reliance Infocomm shares to three unlisted firms at the rate of Re 1 each. This issue does not come under the purview of the Securities and Exchange Board of India because Reliance Infocomm and its predecessor Reliance Information and Communications Limited are unlisted companies, which are free to allocate shares to anyone as long as appropriate resolutions are passed. However, it will look into the matter to ascertain if any law was violated.