Reliance Power Shares Drop 4.96% to ₹46.17 Amid Director Arrest and CFO Resignation

Mumbai, 13 October 2025:Shares of Reliance Power Limited (NSE: RPOWER) declined 5.15%, or 2.50 points, to trade at ₹46.08, as of 10:30 AM as the market reacted to the weekend developments involving the arrest of the Executive Director and Chief Financial Officer (CFO) and subsequent resignation.

Reliance Power Limited, part of the Reliance ADA Group, is engaged in the generation and distribution of electricity through coal, gas, and renewable energy projects. Incorporated in 1995 and listed on BSE (532939) and NSE (RPOWER) in February 2008, it is a constituent of the NIFTY Smallcap 250 index. Headquartered in Mumbai, the company operates across multiple power projects, delivering energy solutions to industrial and urban customers.

Share Price Volatility Spikes to ₹43.55 – ₹46.65 as Leadership Crisis Unfolds

The stock opened at ₹43.55, touched a high of ₹46.65, and traded in a volatile range, reflecting market sensitivity to governance issues. A total of 191.52 lakh shares changed hands with a turnover of ₹85.76 crore, highlighting significant trading activity. Compared to the previous close of ₹48.58, the fall represents a sharp ₹2.41 decline, underlining the market’s immediate reaction to leadership instability.

Executive Director and CFO Arrest Under PMLA Sparks Operational Concerns

In a regulatory disclosure on 11 October 2025, Reliance Power confirmed that Shri Ashok Kumar Pal, Executive Director and CFO, was arrested by the Enforcement Directorate (ED) under Section 19 of the Prevention of Money Laundering Act, 2002 on 10 October 2025. The arrest is linked to a fake bank guarantee case reported in 2024, with both the company and its subsidiaries identified as victims. The company reiterated that a criminal complaint had been filed with the Economic Offence Wing of Delhi Police, and an FIR was registered on 11 November 2024. Reliance Power emphasised that former board member Anil D. Ambani, who has not been on the board for over 3.5 years, is not involved in this matter.

CFO Resignation Effective 11 October 2025 Amid Ongoing Investigation

Following his arrest, Shri Ashok Kumar Pal tendered his resignation as Executive Director and CFO, effective 11 October 2025, citing the ongoing investigation. Pal stated, “I maintain my innocence and I am not involved in any wrongdoing; however, I am tendering my resignation considering my arrest and pending investigation till my name is cleared.” This sudden change in leadership has added to uncertainty surrounding company operations and compliance protocols.

Board Strengthens Disclosure Protocols with New Authorisations

In response to the leadership changes, the Board of Directors authorised Executive Director & CEO Neeraj Parakh and Company Secretary Ramandeep Kaur to assess material information and handle regulatory disclosures under SEBI (Securities and Exchange Board of India) Regulation 30. This move aims to maintain transparency and ensure regulatory compliance during the ongoing investigation.

The recent leadership developments and regulatory interventions highlight the critical importance of robust governance and compliance mechanisms. Stakeholders and market observers should monitor official disclosures and operational updates as the company navigates management transitions and regulatory inquiries.

REF:https://nsearchives.nseindia.com/corporate/RPOWER_11102025192657_Reliance_Power_SE_Disclosure_Arrest_of_DirectorKMP.pdf

https://nsearchives.nseindia.com/corporate/RPOWER_11102025205246_Reliance_Power_Disclosure_Resignation_of_Sh_Ashok.pdf

https://nsearchives.nseindia.com/corporate/RPOWER_11102025211935_Reliance_Power_Disclosure_under_30_5_.pdf

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