Anil Ambani stepped down from the board of Reliance Infrastructure Ltd and Reliance Power Ltd on Friday evening, a month after a Securities and Exchange Board of India (Sebi) order asked him and other directors of Reliance Home Finance Ltd to quit as directors in any listed company with immediate effect.
In exchange filings, the two companies said that “the board looks forward to an early closure of the matter and inviting Mr. Ambani back to provide his vision and leadership to the company in the interest of all stakeholders.”
“The board noted that during the past year, the company has created immense value for its around 800,000 shareholders with the stock price increasing from a low of ₹32 to a high of ₹150,” Reliance Infrastructure said in the exchange filing. Reliance Power credited Ambani’s leadership for taking the stock price from a low of ₹4 to a high of ₹19 in the past year.
In an 11 February interim order passed in the case of Reliance Home Finance Ltd, the regulator barred Ambani, Amit Bapna, Ravindra Sudhalkar and Pinkesh R. Shah from associating with any listed entity, acting as their directors and from associating with any market intermediary.
“Noticees are hereby restrained from associating themselves with any intermediary registered with Sebi, any listed public company or acting as Directors/promoters of any public company which intends to raise money from the public, till further orders,” said Sebi in its 11 February order.
The directions were given based on Sebi’s findings regarding the loan transactions of Reliance Home Finance (RHFL).
The matter relates to irregularities in the general-purpose corporate loan to the tune of ₹8,470.65 crore extended by RHFL to connected entities.