SEBI BANS ANIL AMBANI FOR 5 YEARS
The Securities and Exchange Board of India (SEBI) has taken a strong stance against Anil Ambani and 24 associated entities by banning them from the securities market for five years. This action follows an in-depth investigation into Reliance Home Finance Ltd (RHFL), where Ambani and key executives were found to have orchestrated a fraudulent scheme to divert funds from the company. The funds, which were disguised as loans, were funneled to entities connected to Ambani, many of which lacked financial viability, leading to substantial defaults.
The investigation revealed severe corporate governance failures within RHFL, as the company’s management, under Ambani’s influence, ignored directives from the board of directors to curb dubious lending practices. SEBI’s findings indicated that these fraudulent activities resulted in significant financial losses for the company’s shareholders, as RHFL’s stock price plummeted dramatically from ₹59.60 in March 2018 to just ₹0.75 by March 2020.
In addition to the market ban, SEBI has imposed a ₹25 crore fine on Anil Ambani and barred him from serving as a director or Key Managerial Personnel (KMP) in any listed company or SEBI-registered intermediary during the ban period. RHFL itself has been banned from the securities market for six months and fined ₹6 lakh. The ruling underscores SEBI’s commitment to upholding corporate governance and accountability in the financial markets.
