Boris Johnson's brother quits as director of firm linked with Adani Group

Former British Prime Minister Boris Johnson's brother Jo Johnson resigned from the non-executive directorship of a UK-based investment firm linked with Indian billionaire Gautam Adani's 'Adani Enterprises'. Jo Johnson was appointed as a director of London-based Elara Capital Plc in June last year. The company describes itself as a capital markets business that raises funds for Indian corporates, Financial Times reported.

Johnson insisted he has been assured of the company's "good standing" and has stepped down due to his own lack of "domain expertise".

"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 after news of his resignation was announced by the newspaper.

"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," said Johnson, also a member of the UK House of Lords.

Hindenburg report and Elara Capital

According to a Financial Times report, Elara's asset management business, although not under any form of scrutiny at present, is under the spotlight after the US short seller Hindenburg Research linked Mauritius-based funds managed by Elara Capital with the Adani Group.

The Adani Group has categorically denied Hindenburg’s accusations, calling them a "malicious combination of selective misinformation and stale, baseless and discredited allegations."

Meanwhile, the company’s website notes thatElara Capital Plc was founded in 2002 primarily as a capital markets business, raising funds for Indian corporates through "GDR’s (global depository receipt), FCCB’s (foreign currency convertible bond)and the London AIM market (London stock exchange sub-market).

It adds: "Since its first GDR issue in 2003, Elara has raised funds for several Indian corporates. Since then, the group has diversified further into corporate advisory, asset management, broking, mergers and acquisitions and private equity.

"Elara has not only diversified the product range, it also has diversified into other emerging markets through its fully licensed offices in New York, Singapore, Mumbai, Ahmedabad and London."

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