In a major development, the Securities and Exchange Board of India has issued punitive actions against Anil Ambani, the Chairman of the Reliance Group, and some others. This was after the regulator found evidence of the supposed fund diversion of Reliance Home Finance, which was busted as a former subsidiary of Reliance Capital. The case has stirred substantial market noise and increased interest in the latest Anil Ambani Reliance power news.
Impact on Reliance Group Companies
The SEBI order has severely affected Reliance Group firms. Stocks of several firms have fallen sharply after the ordered was passed. On August 23, 2024, shares of anil ambani reliance power and other companies, such as Reliance Home Finance and Reliance Communications, plunged to their lower circuit limits in response to the action by the regulator.
Reliance Power Share Plunges
Among the main companies, share prices in Ambani’s portfolio Reliance Power saw days of loss at 4.99% to move to ₹32.73 on the Bombay Stock Exchange (BSE) lower circuit limit. Since the SEBI order, a great pressure descended on the stock of the company as investors expressed concern over what the ban meant for Ambani and the broader management shakeup. In broader terms, this is the drop in reliance power share price for the reason of a generally obscured future of the firm.
SEBI’s Stringent Penalties
SEBI’s order, as prevailed on August 22, 2024, would have broad ramifications, not just for Anil Ambani but the entire Reliance Group. The regulator levied a fine of ₹25 crore on Ambani and debarred him from the securities market for five years. The order also debars Ambani from occupying any key managerial position or directorship in any listed company or entity registered with SEBI. Apart from these, fines have been imposed on 24 other persons and institutions that range from ₹21 crores to ₹25 crores.
In a detailed 222-page order, SEBI opined Anil Ambani had allegedly siphoned off money from Reliance Home Finance with the help of KMPs through the company as a vehicle to the said transaction by advancing loans to entities relative to him. Investigations for the fiscal year 2018-19 revealed a string of loans to firms with minimal assets, cash flow, or revenue, thereby suggesting a probable sham behind the operations.
Shareholding by Anil Ambani Reliance Power
The present promoter of Reliance Power is Anil Ambani, who holds a considerable amount of stake in reliance power. However, the recent happening has raised doubt over the lucrative aspects and future prospects of the company since the order of SEBI has given much speculation about the change in the company ownership pattern, and it has been rumoured that a reliance power takeover can be cherished in the market. As of date, there has been no official reliance power update takeover, but investors are on the edge waiting for happenings.
Reliance Infrastructure and Reliance Power Respond
Anil Ambani, in turn, resigned from the boards of both Reliance Infrastructure and Reliance Power. This, according to the SEBI’s interim order in February 2022. Similarly, the two firms have also clarified that they were not noticees or parties to the said proceedings that culminated in the said order of SEBI. Undoubtedly, regulatory action has shaken investor confidence with both companies seeing falls in their stock prices.
In the meantime, Reliance Power’s future also remains highly uncertain, with Anil Ambani continuing to consider his legal options. The position in the stock market is expected to be highly uncertain as investors bide their time to know more about the going on. A lot of scrutiny is underway, and a possible Reliance Power takeover would therefore mean that the coming months will circuit what Reliance Power shapes up to and what happens to its role within the larger Reliance Group.
Does Anil Ambani Own Reliance Power?
The question ‘does anil ambani own reliance power’ has arisen in recent discussions. The answer to it is, however, that in any current situation, Anil Ambani remains the name of a reliance power promoter, an indication of great influences in setting strategic decisions for the company; however, with the way things are currently being done, the level of his control and what his involvement holds for his future is still under debate.
More difficult times lie ahead for Anil Ambani and his companies after the strict action taken by SEBI. Now the market is just waiting to see the way forward as far as the legal tangles are concerned in the case of Anil Ambani and its fallout on Reliance Power and other group companies for that matter. Meanwhile, this has made the market jitter, with investors on high alert for whether a reliance power takeover update is in the offing or changes in the management.
FAQ
Why Anil Ambani resign from Reliance Power?
As pursuant to SEBI’s interim order dated 11 February 2022, Anil Ambani resigned from Reliance Power with relation to the matter of RHFL.
Who is the CEO of Reliance Power?
CEO of Reliance Power is Raja Gopal Krotthapalli.
Which company is under Anil Ambani?
Reliance Home Finance Ltd, Reliance Power and Reliance Communications comes under the companies of Anil Ambani.
What is the current status of Reliance Power?
Reliance Power is trading 4.98% lower at ₹31.10, with a 40.56% gain this year but a -0.12% drop over the last 5 days.
