The Hindu : Business : Anil Ambani meets Chidambaram

Online edition of India's National Newspaper
Saturday, Dec 25, 2004

Business

Business

Anil Ambani meets Chidambaram

By Our Special Correspondent

NEW DELHI, DEC. 24. Even as Anil Ambani, the younger of the Ambani brothers, met the Finance Minister, P. Chidambaram today, the market-watchdog, Securities and Exchange Board of India said that it was keeping a close watch on the developments in the Reliance group.

Of late, Mr. Anil Ambani, Vice Chairman and Managing Director of Reliance Industries Limited (RIL), has raised a number of issues pertaining to corporate governance within the Reliance group and has even hinted at some inappropriateness in the transfer of shares of Reliance Infocomm to his elder brother, Mukesh Ambani, who is the Chairman of Reliance Industries. The younger Ambani's questioning of the transfer of shares has resulted in Mr. Mukesh Ambani returning those shares which he is supposed to have got as sweat equity.

However, Mr. Ambani was tight-lipped after his hour-long meeting with Mr. Chidambaram and refused to comment on the discussions that took place. He also did not take any questions on the on-going developments in the Rs. 90,000-crore Reliance group. He also did not comment on whether Mr. Mukesh Ambani's announcement of giving up Reliance Infocomm shares answered his query on changes in equity pattern of Reliance Infocomm. Incidentally, prior to his meeting with the Finance Minister, Mr. Anil Ambani, also had a meeting with the Secretary, Department of Economic Affairs, Rakesh Mohan. No details were available on this meeting too.

Emerging from a separate meeting with Mr. Chidambaram earlier, the SEBI Chairman, G. N. Bajpai, said, "We are keeping a close watch (on developments in Reliance).'' Asked about the alleged breach of corporate governance in the Reliance group of companies, particularly Reliance Industries, Mr. Bajpai said "corporate governance issues are being looked into by stock exchanges as per clause 14 of listing agreement.'' However, he did not elaborate on any specific issue.

Crucial Monday meeting

PTI reports:

The Ambani brothers were holding their cards close to their chest ahead of Monday's crucial Board meeting of the flagship Reliance Industries but indications tonight were that more than the single-point agenda already made public would be taken up.

The 12-member board is officially slated to consider only one item — buyback of RIL shares, aimed at curbing the volatility in its prices. Both camps are now giving indications that the agenda will go beyond this.

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