Reliance Power, Reliance Infra shares hit 5% lower circuit; two developments you need to know

Reliance Power was locked in at ₹46.46, down 5%, while Reliance Infrastructure was also frozen at a 5% lower circuit at ₹275.65 on the NSE.

The stocks are in focus as the companies said on Sunday that the recent action by CBI on Reliance Communications has had no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders.

In two separate exchange filings, the companies said they are separate and independently listed entities with no business or financial linkage to Reliance Communications.

Further, Anil D. Ambani has not been on the Board of Reliance Power for more than 3.5 years. Accordingly, any action in relation to Reliance Communications has no bearing or impact on their governance, management, or operations, the companies said.

The companies said they "wish to clarify the media reports that the recent action by the Central Bureau of Investigation on Reliance Communications Ltd and on Anil D Ambani has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders."

At present, Reliance Communications is being managed under the supervision of a committee of creditors, led by SBI and overseen by a resolution professional.

The matter remains sub judice, pending before the NCLT and other judicial forums, including the Hon'ble Supreme Court, for the past six years, it said.

Reliance Power and Reliance Infrastructure said they will continue to focus on business plans and remain committed to creating value for all stakeholders.

Reliance Infrastructure is one of the largest infrastructure companies, developing projects through various special-purpose vehicles (SPVs) in several high-growth sectors, such as power, roads, and metro rail in the infrastructure space and the defence sector.

Reliance Power, on the other hand, is one of India's leading private sector power generation companies. The company has an operating portfolio of 5,305 megawatts, including 3,960 megawatts from Sasan Power Ltd -- the world's largest integrated coal-based power plant.

After SBI, Bank of India tags RCom and Anil Ambani as fraud

Investors are likely to consider the development that after the State Bank of India (SBI), the Bank of India has classified the loan account of insolvent Reliance Communications as fraudulent and named its former director, tycoon Anil Ambani, citing alleged fund diversion in 2016, according to a regulatory filing.

State-owned Bank of India granted a ₹700 crore loan in August 2016 to Reliance Communications for its ongoing capital and operational expenditure and repayment of existing liabilities. Half of the sanctioned amount disbursed in October 2016 was invested in a fixed deposit, which was not permitted as per the sanction letter, according to the bank's letter that RCom disclosed in a stock exchange filing.

Responding to the development, Anil Ambani's spokesperson said, "The action by Bank of India to classify the loan account of Reliance Communications Limited (RCom) along with Anil Ambani pertains to a matter dating back more than 10 years, as per disclosures and records available in the public domain."