Following a market regulator’s order prohibiting him from associating with any listed firm, Reliance Group Chairman Anil Ambani resigned as a director of Reliance Power and Reliance Infrastructure on Friday.
“In compliance with SEBI (Securities and Exchange Board of India) interim order, Anil D Ambani, non-executive director, steps down from the board of Reliance Power,” the company stated in a BSE filing.
Anil Ambani has stood down from Reliance Infrastructure’s board “in line with SEBI interim ruling,” according to a separate statement to the stock exchange.
Reliance Home Finance Ltd, industrialist Anil Ambani, and three other individuals were excluded from the securities market by the Securities and Exchange Board of India (Sebi) in February for allegedly syphoning funds from the company.
Mr Ambani and three others were also barred from “associating themselves with any intermediary registered with Sebi, any listed public business, or acting directors/ promoters of any public company which plans to raise money from the public until further instructions,” according to the regulator.
Rahul Sarin was appointed as an Additional Director in the capacity of Independent Director on the boards of RPower and RInfra on Friday, subject to the approval of members at the general meeting, according to the two Reliance Group firms.
According to the businesses, the company’s board of directors unanimously reposed full trust in Mr Ambani’s leadership and invaluable contribution to navigating the company through enormous financial hurdles and towards becoming potentially debt-free in the coming financial year.
They also stated that the boards are looking forward to a quick resolution of the dispute and asking Mr Ambani back to run the company in the best interests of all stakeholders.
The company’s stock price has risen from a low of 32 to a high of 150 (469 per cent) in the last year, creating enormous value for its approximately 8 lakh stockholders, according to the boards.
Rahul Sarin, 72, retired as Secretary to the Government of India after a successful career in public service spanning over 35 years.
Mr Sarin now serves on the board of directors of Afthonia Private Limited.