2024-09-23 21:28:41 :
Securities and Exchange Board of India fines Jai Anmol Ambani, son of industrialist Anil Ambani $In the Reliance Home Finance case, a penalty of Rs 1 crore was imposed for failure to conduct due diligence while sanctioning a general purpose company loan (GPCL). was also fined $Krishnan Gopalakrishnan, former chief risk officer of Reliance Home Finance, was fined Rs 15 lakh for his role in the approval process.
Both Anmol Ambani and Gopalakrishnan were found to have violated Sebi’s listing obligations and disclosure requirements and were required to pay fines within 45 days of the order.
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In August, Sebi banned Anil Ambani and 24 others from the securities market for five years and fined him for misappropriating funds from Reliance Home Finance Ltd $250 million rupees.
Anmol Ambani ‘disregarded board’s instructions’
In its order on Monday, Sebi noted that Anmol Ambani, as a board member of Reliance Home Finance, had approved a $In February 2019, Accura Productions Private Limited received GPCL of Rs 20 crore. This is despite three days ago, when other members of the board clearly opposed approving any more GPCL.
Sebi said Anmol Ambani acted beyond his duties as an executive director and ignored the instructions of the board. “In doing so, Anmol Ambani gave the impression of being proactive, was definitely not in the interest of shareholders, did not act with due care and diligence, and failed to maintain high ethical standards,” the order read.
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Sebi noted that Anmol Ambani, as a board member of Reliance Capital Limited and Reliance Home Finance Limited, as well as a director of other Reliance ADAG group companies to which the funds were lent, failed to conduct reasonable due diligence in the GPCL loan process. This includes on-lending of funds by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital Limited.
Gopalakrishnan’s role
Sebi said Gopalakrishnan approved several GPCLs despite knowing about material discrepancies in the credit approval memoranda. “As a member of RHFL senior management, [Gopalakrishnan] “He should follow due process, abide by the company’s code of conduct, be diligent and conscientious in the performance of his duties, act in good faith and safeguard the interests of all the company’s stakeholders,” the order reads.
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