Hinduja Group-owned Asia Enterprises has received SEBI’s approval for taking control of Reliance Wealth Management. The approvals were received under SEBI’s regulations governing investment advisers and portfolio managers, respectively.

Reliance Wealth will now proceed with the control change in terms of these regulations, sources said.

The approvals come in the wake of the successful bid by IndusInd International Holdings, the promoter entity of the fifth largest private sector bank in India — IndusInd Bank.

IIHL emerged as the successful resolution applicant to acquire the beleaguered financial services company – Reliance Capital, under the Corporate Insolvency Resolution Proceedings process of Insolvency and Bankruptcy Code. IIHL’s resolution plan for Reliance Capital included Reliance Wealth.

IIHL’s resolution plan for Reliance Capital involves an upfront cash amount of ₹9,650 crore. It also encompasses Reliance Capital’s group entities providing life, general and health insurance, as well as the asset reconstruction business. The CIRP process against Reliance Capital was initiated in November 2019. Subsequently, IIHL bid received support from creditors, with a 99.6 per cent majority voting in its favour.

In February, the National Company Law Tribunal approved the resolution plan. Reliance Capital had a secured debt of ₹16,000 crore. The lenders would receive ₹10,000 crore from IIHL, including ₹9,661 crore of upfront cash.

The terms of the Resolution Plan will be implemented by May 27, about 90 days from the approval of the Resolution by the NCLT. As per the NCLT’s order, the term of 90 days will be automatically extended to factor in the time required for fulfilment of such conditions.