Investors Exit Reliance Anil Ambani Group – Poor Corporate Governance

The country’s watchdog – SEBI settled dispute of Reliance Infra & Reliance Natural Resources involved in fund diversion to group company – RCom by collecting fine amounting to Rs 50 [Rs 25 cR + Rs 25 cR] Cr from Directors including Anil Ambani. This tells us how bad these companies are run – Reliance Infra and RNRL [Now part of Reliance Power] Reliance ADAG Large Cap Stocks were caught in Bloodbath on the Street with each of them falling between 6% to 10%.

The SEBI order said that the promoters and directors have accepted – utilization of funds raised through external commercial borrowings and foreign currency convertible bonds and their alleged dealing in the shares of Reliance Communications Ltd, and misrepresentation of investments in the annual reports of the three years from FY2007 to FY2009.

Securities and Exchange Board of India (SEBI) has restricted Reliance Infrastructure (RELI) from participating in the secondary markets in settlement of the investigations regarding utilization of funds raised through the foreign currency debt markets and likely misrepresentation of investments in the annual reports.

We have written in the past and re-iterate again on how Reliance Group headed by Anil Ambani is destroying Shareholders wealth and building Palatial Bungalows and Palaces for his own sake.