The Securities and Exchange Board of India (Sebi) has approved an application for a proposed change in control at Reliance Securities as required under regulations governing research analysts and investment advisors, said sources. The plea—made to Sebi’s market intermediaries department—comes ahead of the change in promoter group at parent Reliance Capital from the erstwhile Anil Ambani group to now Hinduja group following IndusInd International Holdings’ (IIHL) successful bid to acquire the beleaguered financial services company.
An email sent to Sebi garnered no response, while a spokesperson for the companies acquiring Reliance Securities said, “As a matter of policy, we do not comment on regulatory developments.”
Hinduja group-owned IIHL has emerged as the successful resolution applicant to acquire Reliance Capital under the Corporate Insolvency Resolution Proceedings (CIRP) process of the Insolvency and Bankruptcy Code (IBC).
As per news reports, Reliance Securities has also received approvals from the NSE, BSE, MCX, and NCDEX for transferring shares owned by existing promoter Reliance Capital to Hinduja-led Aasia Enterprises.
IIHL’s resolution plan for Reliance Capital involves an upfront cash payment of Rs 9,650 crore. Through Reliance Capital, the Hinduja group will get a toehold into life, general and health insurance businesses, alongside asset reconstruction and broking business. Reports also suggest that the group is looking to foray into the mutual fund arena and is in advanced talks to acquire a majority stake in Invesco AMC.
First Published: Apr 04 2024 | 8:29 PM IST
