No Pledged Shares Of RNAM Invoked By Any Lender, Says Reliance Capital

Reliance Capital Ltd. on Wednesday said no pledged shares of Reliance Nippon Life Asset Management Ltd. have been invoked by any lender.

Further, borrowings covered under the pledged RNAM shares are matched by cash amounting to about Rs 1,600 crore lying in an escrow account under tripartite agreements signed between the parties, Reliance Capital said.

The clarification comes following a report suggesting that Reliance Capital has pledged 22 percent of its stake in RNAM.

According to the report, the pledging was done in favour of IDBI Trusteeship and Axis Trustee Services, who were acting on behalf of some of the creditors.

L&T Mutual Fund, Invesco Mutual Fund, Birla Sun Life Mutual Fund, DHFL Pramerica Mutual Fund and UTI Mutual Fund were among the fund houses in favour of whom the pledge was created, the report added.

Pursuant to the report, Reliance Capital in a statement clarified that "no pledged shares have been invoked by any lender".

In May, Reliance Capital announced release of pledge on 8.66 percent shareholding in RNAM by two JM Financial Ltd. entities.

In the same month, Reliance Capital had announced to exit the mutual funds business by selling its stake in RNAM to its joint venture partner Japan's Nippon Life Insurance.

Shares of Reliance Capital closed at Rs 35.10 on the BSE, down 0.14 percent from the previous close, and the scrip of RNAM ended 2.12 percent higher at Rs 233.25.