Anil Dhirubhai Ambani faces a five-year ban and a Rs25 crore fine from the Securities and Exchange Board of India (SEBI) for diverting funds from Reliance Home Finance. Additionally, twenty-seven other entities, including key staff of Reliance Home Finance, have been barred by SEBI from accessing the capital markets. Consequently, stocks linked to Anil Ambani’s companies declined on Friday.
AMN
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.
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.