The market regulator has imposed a penalty of ₹25 crore on Ambani and restrained him from serving as a director or key managerial personnel (KMP) in any listed company, associate firm of a listed company or any Sebi registered entity for five years
The Securities and Exchange Board of India (Sebi) has barred Anil D. Ambani and 24 others from the securities market for five years for the alleged diversion of funds from Reliance Home Finance Ltd (RHFL).
The market regulator has imposed a penalty of ₹25 crore on Ambani and restrained him from serving as a director or key managerial personnel (KMP) in any listed company, associate firm of a listed company or any Sebi registered entity for five years.
RFHL has been barred from accessing the securities market for six months and imposed a penalty of ₹6 lakh.
Sebi has also levied a fine ranging ₹25-27 crore on 24 other entities.
The 222-page regulatory action came after the regulator conducted a probe for 2018-19 to ascertain any regulatory violations. Reliance Capital was the major promoter of RHFL, holding 47.91 per cent of its equity.
Sebi sought copies of certain loan application documents pertaining to General Purpose Working Capital Loans (GPCL/GPC Loans).
An analysis of such documents — total 70 application documents for loans of ₹6,187.78 crore for GPCL — showed 14 applications involving ₹1,472.16 crore were approved by Ambani in his capacity as chairman, Anil Ambani group. Sebi said this was done despite a decision of the RHFL board on February 11, 2019 not to grant any further loans to corporates