The shares of Reliance Communications fell to a record low of Rs 60 a per share on the Bombay Stock Exchange (BSE) following a critical report released by Canadian research firm Veritas. Veritas has said that the shares of Reliance Communications should be valued at just Rs 15 compared to the market value of Rs65.

The independent research firm devised a new idea called "governance discount", under which it asks the investors to apply a governance discount of about 50 per cent on the value of the stock. According to the report, the approximate value of stock is around Rs30 and after applying a 50% governance discount the value is about 15 per cent.

The report titled, 'A house of Cards' said that Reliance Communications is entering a phase of uncertainties. The research firm has downgraded the stock rating to `Sell'. The repro also said that the factors like the sale of tower assets, proceeds from FLAG IPO, accounting practices, governance practices and profit & loss accounting are areas of concern for the company.

Reliance Communications responded by sing that the report backs credibility and the company fully complies with all the government regulations and norms. The shares of the company recovered and were trading at Rs 62.10 this afternoon at the time of reporting.