Reliance Group Chairman Anil Ambani on Friday resigned as director of Reliance Power and Reliance Infrastructure, following markets regulator SEBI order restraining him from associating with any listed company.
"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. In a separate filing to the stock exchange, Reliance Infrastructure said that Anil Ambani has stepped down from its board "in compliance of SEBI interim order". Sebi in February barred Reliance Home Finance Ltd, industrialist Anil Ambani and three other individuals from the securities market for allegedly siphoning off funds from the company. The regulator also restrained Ambani and three others from "associating themselves with any intermediary registered with Sebi, any listed public company or acting directors/ promoters of any public company which intends to raise money from the public till further orders."
The two Reliance Group companies said that Rahul Sarin has been appointed as an Additional Director in the capacity of Independent Director for a term of five years on Friday on the boards of RPower and RInfra, subject to approval of members at the general meeting. 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, the firms said.
They also said that the boards look 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. During the past one year the company has created immense value for its around 8 lakh shareholders with stock price increasing from a low of Rs 32 to a high of Rs 150 (469%), the boards noted. Rahul Sarin, 72, a civil servant with a distinguished record of public service of over 35 years, retired as Secretary to Government of India. At present Sarin is a director of Afthonia Private Limited.