The Securities and Exchange Board of India (SEBI) has taken a big action against industrialist Anil Ambani. The market regulator has banned Anil Ambani and 24 other institutions, including former top officials of Reliance Home Finance, from the equity market for 5 years. A fine of Rs 25 crore has also been imposed. SEBI has taken a big action against them on the charge of fund diversion from the company.
SEBI has imposed a fine of Rs 25 crore on Anil Ambani and barred him from engaging in the securities market as a director or key managerial personnel (KMP) in any listed company or any intermediary registered with the market regulator for a period of 5 years. Apart from this, the market regulator has banned Reliance Home Finance from the securities market for six months and imposed a fine of Rs 6 lakh on it.
What did SEBI find against Anil Ambani?
In its 222-page final order, SEBI found that Anil Ambani, with the help of key management of Reliance Home Finance Limited (RHFL), had devised a fraudulent scheme to siphon off funds from RHFL by showing them as loans to entities linked to him. Although the board of directors of RHFL had issued strict directions to prevent such lending practices and conducted regular reviews of corporate loans, the company’s management ignored these orders.