Reliance Group Chairman Anil Ambani has stepped down as director of Reliance Power and Reliance Infrastructure, following the Securities and Exchange Board of India's (SEBI) order restraining him from trading in securities or being associated with any listed companies.
The development came a month after market regulator SEBI barred Reliance Home Finance, industrialist Anil Ambani, and three other individuals from the securities market for allegedly siphoning off funds from Reliance Home Finance Ltd (RHFL). In February 2022, the regulator had passed the order against Anil Ambani, the younger brother of billionaire Mukesh Ambani, and three other individuals — Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
"Anil D Ambani, non-executive director, steps down from the board of Reliance Power in compliance of SEBI (Securities and Exchange Board of India) interim order," Reliance Power said in a BSE filing after market hours on Friday.
Similarly, Reliance Infrastructure also informed the exchange about the resignation of Anil Ambani. “Anil D. Ambani, non-executive director, steps down from the Board of Reliance Infrastructure in compliance of SEBI interim order,” it said in a filing to the BSE.
“The board of directors of the company unanimously reposed full trust in Ambani's leadership and invaluable contribution to steering the company through great financial challenges and towards being potentially debt free in the course of the coming financial year,” RPower and RInfra said in their releases.
“The board looks forward to an early closure of the matter and inviting Ambani back to provide his vision and leadership to the company in the interest of all stakeholders,” they further added.
Reliance Group companies also highlighted that Reliance Infrastructure has created immense value for its around 8 lakh shareholders in the last one year, with the stock price increasing from a low of ₹32 to a high of ₹150, registering a growth of 469%. Similarly, the share price of Reliance Power surged from a low of ₹4 to a high of ₹19, delivering 375% returns to its 36 lakh shareholders in the past one year.
The two Reliance Group companies also announced the appointment of Rahul Sarin as an additional director in the capacity of independent director for a term of five years on the boards of RPower and RInfra, subject to the approval of members at the general meeting. Sarin, 72, is a civil servant with a record of public service of over thirty five years, retired as secretary to Government of India, as per the exchange filing. Currently, he is a director of Afthonia Private Limited.