SEBI Ban Anil Ambani: Anil Ambani and 24 entities, including former officials of Reliance Home Finance, are barred by Sebi from the securities market for five years for fund diversion. Sebi imposed a Rs 25 crore penalty on Ambani and restricted him from participating in the market. Reliance Home Finance was also fined Rs 6 lakh and barred for six months.
The Securities and Exchange Board of India (Sebi) has imposed a significant blow to industrialist Anil Ambani and 24 other entities, including key former officials of Reliance Home Finance Ltd (RHFL), by banning them from the securities market for five years and imposing a penalty of Rs 25 crore on the industrialist. The decision follows a detailed investigation into allegations of fund diversion from RHFL, revealing a fraudulent scheme orchestrated by Ambani and his associates.
Why did Sebi ban Anil Ambani from the market?
In its 222-page order, Sebi outlined how Ambani leveraged his position as chairperson of the ADA Group and his indirect control over RHFL to collaborate with the company’s key managerial personnel to misappropriate company funds. These funds were disguised as loans extended to entities linked to Ambani, which were often financially unviable and lacked sufficient assets or revenue.