Following a Securities and Exchange Board of India (SEBI) ruling prohibiting him from dealing in securities or being affiliated with any listed firms, Reliance Group Chairman Anil Ambani has stood down as director of Reliance Power and Reliance Infrastructure.
Reliance Home Finance, entrepreneur Anil Ambani, and three other persons were blacklisted from the securities market by market regulator SEBI a month ago for allegedly syphoning cash from Reliance Home Finance Ltd. (RHFL). Anil Ambani, Mukesh Ambani’s younger brother, and three other persons — Amit Bapna, Ravindra Sudhakar, and Pinkesh R Shah — were sanctioned by the regulator in February 2022.
“Non-executive director Anil Ambani resigns from the board of Reliance Power in accordance with an interim order issued by SEBI (Securities and Exchange Board of India),” Reliance Power said in a BSE filing after market hours on Friday.
Similarly, Reliance Infrastructure informed the exchange of Anil Ambani’s resignation. In a report to the BSE, it announced that “Anil D. Ambani, non-executive director, steps down from the Board of Reliance Infrastructure in line with SEBI interim decision.”
“The business’s board of directors unanimously reposed complete faith in Ambani’s leadership and invaluable commitment to leading the company through enormous financial hurdles and toward becoming possibly debt free in the coming financial year,” RPower and RInfra said in a joint statement.
“In the best interests of all stakeholders, the board looks forward to a quick resolution of the case and bringing Ambani back to offer his vision and leadership to the firm,” they said.
Reliance Group firms also stated that Reliance Infrastructure has produced enormous wealth for its almost 8 lakh stockholders in the previous year, with the stock price rising 469 percent from a low of 32 to a high of 150. Similarly, Reliance Power’s stock has risen from a low of 4 to a high of 19, giving its 36 lakh stockholders a 375 percent return in the last year.
The two Reliance Group firms also announced Rahul Sarin’s appointment to the boards of RPower and RInfra as an extra director in the position of independent director for a five-year term, subject to approval by members at the general meeting. Sarin, 72, is a retired secretary to the Government of India who has worked for the government for over 35 years, according to the exchange filing. He is a director of Afthonia Private Limited at the moment.
