Businessman Anil Ambani is reviewing the SEBI order that fined him and banned him from the securities market for five years in the alleged fund diversion case. His spokesperson said in a statement on Sunday that he will take the appropriate next step as per legal advice. He said in a statement that Ambani has resigned from the boards of Reliance Infrastructure Limited and Reliance Power Limited as per SEBI’s interim order dated February 11, 2022 in the matter related to Reliance Home Finance Limited.
The spokesperson said that they have been complying with the said interim order (of February 11, 2022) for the last two and a half years. We are reviewing SEBI’s order of August 22 and will take the appropriate next step as per legal advice. On August 22, SEBI banned Anil Ambani and 24 others from the equity market for 5 years on charges of fund diversion, while separate fines were also imposed.
A fine of Rs 25 crore was imposed
The Securities and Exchange Board of India (SEBI) had imposed a fine of Rs 25 crore on Ambani, saying he had planned to “siphon off” money from Reliance Home Finance, a listed subsidiary of the Reliance Group of which he is the chairman. The ban means he and 24 others will not be able to access the equity markets.
SEBI’s order will not affect Reliance Infrastructure Limited
In a separate statement, Mumbai-listed Reliance Infrastructure Ltd said it was “not a noticee or a party to the proceedings before SEBI in which the order has been passed. No directions are given in the order against Reliance Infrastructure Ltd”. The company said Anil Ambani had resigned from the board of directors of Reliance Infrastructure Ltd as per the interim order dated February 11, 2022 passed by SEBI in the same proceedings. Therefore, the SEBI order has no bearing on the business and affairs of Reliance Infrastructure Ltd.
These companies went bankrupt
Reliance Power, another listed company of Anil Ambani’s group, also issued a similar statement saying that Ambani will resign in 2022 and the latest order of SEBI will not affect it. In the last few years, Anil Ambani has seen the three largest firms of the group, including Reliance Communications, Reliance Capital and Reliance Infrastructure, go bankrupt due to outstanding loans.