Anil Ambani's Reliance Power has disclosed that market regulator Securities and Exchange Board of India has initiated a forensic audit of the company to examine alleged regulatory violations.
In a regulatory filing with the stock exchanges on Wednesday, Reliance Power said the forensic audit will probe possible breaches of the Sebi Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the Companies Act, 2013. The audit forms part of Sebi’s enforcement action to assess compliance with securities and corporate governance norms.
Reliance Power, part of the Anil Dhirubhai Ambani Group, is engaged in the development of power generation projects across coal-based, gas-based, hydroelectric and renewable energy segments in India.
Separately, the company also informed exchanges that Manoj Pongde has resigned from his position as Head of Business and Legal, with effect from 14 January. The resignation was disclosed under Regulation 30 of the Sebi Listing Regulations. The company did not specify the reasons for his exit.
Shares of Reliance Power came under pressure following the disclosure. On Friday, the stock was trading over 3 per cent lower at Rs 32.08 on the National Stock Exchange, reflecting investor concerns amid heightened regulatory scrutiny.
Meanwhile, the Delhi High Court on Monday, declined to interfere with a show-cause notice issued by Union Bank of India to Jai Anmol Ambani, son of industrialist Anil Ambani, in connection with the Reliance Home Finance case.
Justice Jasmeet Singh directed Jai Anmol Ambani, who is also a director of Reliance Home Finance, to submit his response to the bank within 10 days. The court further instructed Union Bank of India to pass a “speaking order” after considering the reply and place it before the court.
“I will not interdict a show-cause notice. You argue in the show cause… I will keep the writ petition pending. Let’s see what the order is,” the court observed. |
