CORPORATE
SEBI bars Anil Ambani, 24 others from stock market for diversion of funds
- IBJ Bureau
- Aug 24, 2024
Markets regulator SEBI has barred industrialist Anil Ambani, 24 other entities, including former key executives of Reliance Home Finance, from the securities market for five years for diversion of funds from the company.
The SEBI has imposed a penalty of Rs 25 crore on Anil Ambani and restrained him from being associated with the securities market including as a director or key managerial personnel in any listed company or any intermediary registered with the market regulator for a period of five years.
The regulator has also barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it.
In its 222-page final order, the SEBI found that Mr Ambani, with the help of Reliance Home Finance’s key managerial personnel, had orchestrated a fraudulent scheme to siphon off funds from Reliance Home by disguising them as loans to entities linked to him.
Although the board of directors of Reliance Home had issued strong directives to stop such lending practices and reviewed corporate loans regularly, the company’s management had ignored these orders.
Given these circumstances, the company, Reliance Home itself should not be held equally responsible as the individuals involved in the fraud.
Further, the remaining entities have played the role of being either recipients of illegally obtained loans or conduits to enable illegal diversion of monies from Reliance Home, the markets regulator has noted.
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