Lord Jo Johnson, younger brother of former British Prime Minister Boris Johnson, has stepped down from his position as a non-executive director of London-based investment firm Elara Capital Plc, news agency PTI reported.
Lord Johnson was appointed as a director in June of last year, but resigned on Wednesday, the same day that the Adani Group announced the withdrawal of its Follow-on Public Offer (FPO).
Elara was one of the bookrunners on the FPO. Johnson explained that his resignation was due to a lack of "domain expertise" in specialized areas of financial regulation, despite having received assurance that Elara was compliant with its legal obligations and in good standing with regulatory bodies.
“I joined the board of Elara Capital, an India-focused investment firm based in London, as an independent non-executive director last June in the hope of making a contribution to UK-India trade and investment ties, which I have long supported and co-written a book about,” Jo Johnson said in a statement.
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“I have consistently received assurances from Elara Capital that it is compliant with its legal obligations and in good standing with regulatory bodies. At the same time, I now recognise that this is a role that requires greater domain expertise in specialised areas of financial regulation than I anticipated and, accordingly, I have resigned from the board,” he added.
According to The Financial Times, the asset management business of Elara is currently under scrutiny following allegations by US short seller Hindenburg Research that funds run by the London firm are linked to Adani Group companies. The Adani Group has denied these accusations.
Elara Capital is described as a capital markets business that raises funds for Indian corporates, but has since evolved into a full-service investment bank that offers a wide range of products and services, including corporate advisory, asset management, broking, mergers and acquisitions, and private equity. The firm has a presence in several emerging markets, including offices in New York, Singapore, Mumbai, Ahmedabad, and London.
Lord Johnson, a House of Lords peer, has been a long-time supporter of UK-India trade and investment ties, and even co-wrote a book about it. He said in a statement that he joined Elara Capital with the hope of contributing to these ties, but now recognizes the need for greater domain expertise in the role. The chief executive and founder of Elara Capital, Raj Bhatt, referred the request for comment to the company's compliance officer, who has yet to respond.
