Reliance Group Chairman Anil Ambani on Friday resigned as the Director of Reliance Power and Reliance Infrastructure, following markets regulator the Securities and Exchange Board of India's (SEBI) order restraining him from associating with any listed company.
"Anil D Ambani, the non-executive director, steps down from the board of Reliance Power in compliance with SEBI interim order," Reliance Power said in a BSE filing.
In a separate filing to the stock exchange, Reliance Infrastructure said Anil Ambani has stepped down from its board "in compliance of SEBI interim order".
In February, SEBI 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."
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The two Reliance Group companies said 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 Reliance Power and Reliance Infra, subject to the 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 companies also said 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 year, the company created immense value for its around eight lakh shareholders with the stock price rising from a low of Rs 32 to a high of Rs 150 (469 percent), the boards noted.
Rahul Sarin, 72, a civil servant with a distinguished record of public service of over 35 years, retired as a secretary to the Government of India.
At present, Sarin is a director of Afthonia Private Limited.
Edited by Suman Singh