Anil Ambani’s Reliance Securities gets thumbs up from SEBI, Rs 9650 crore Reliance Capital deal to…

Anil Amban’s Reliance Securities has received a nod from Securities and Exchange Board of India (SEBI) for a proposed change in control at Reliance Securities as required under regulations governing research analysts and investment advisors, a report by Business Insider reveals. The request made to SEBI’s market intermediaries department for change in control comes ahead of change in promoter group at parent Reliance Capital. For those who are unaware, Anil Ambani’s debt-ridden Reliance Capital secured a buyout offer of Rs 9650 crore from Hinduja Group. The group has reportedly begun the process of rebranding Reliance Capital and its operating companies.

IndusInd International Holdings' (IIHL), owned by Hinduja group made a successful bid to get Reliance Capital under the Corporate Insolvency Resolution Proceedings (CIRP) process of the Insolvency and Bankruptcy Code (IBC). 

If reports are to be believed, Anil Ambani’s Reliance Securities has also received a thumbs up from the NSE, BSE, MCX, and NCDEX for transferring shares owned by Reliance Capital to Hinduja-led Aasia Enterprises.

According to a report by the Economic Times, Hinduja Group is in talks with three Japanese banks - Mizuho, SMBC and MUFG to borrow Rs 8000 crore to acquire Anil Ambani’s Reliance Capital under the bankruptcy code. The group aims to secure the loan before the May 27 deadline set by a bankruptcy court to close the deal.

With the major acquisition, Hinduja group will get a space into life, general and health insurance businesses. It may also enter the mutual fund arena.