Sebi bans Anil Ambani – A five-year ban on the securities market for diversion of money from Reliance Home Finance has been imposed by market regulator Sebi on entrepreneur Anil Ambani and twenty-four other organisations, including key individuals who were once employed by the company.
In addition to fining Ambani Rs. 25 crore, Sebi banned him from any involvement in the securities industry for a period of five years, including serving as a director or Key Managerial Personnel (KMP) in any listed firm or market regulator-registered intermediary.
Additionally, Reliance Home Finance was fined Rs 6 lakh by the regulator and prohibited from the securities market for a period of six months.
Sebi concluded in its 222-page final ruling that Anil Ambani had hatched a fraudulent plan to embezzle money from RHFL by passing it off as loans to organisations connected to him, with the assistance of important managerial staff at the company.
The management of RHFL disregarded the firm directives from the Board of Directors to cease these lending practices and to conduct routine reviews of business loans.
This points to a serious governance breakdown that may have been caused by a few influential managers who were influenced by Anil Ambani.
In light of these facts, it is not appropriate to hold RHFL, the firm, and the fraudsters equally accountable.
Additionally, the regulator stated that the remaining firms had either served as conduits to allow the illegal diversion of funds from RHFL or as recipients of loans obtained illegally.
The Securities and Exchange Board (Sebi) stated that its findings “existence of a fraudulent scheme, orchestrated by Noticee No. 2 (Anil Ambani) and managed by RHFL’s KMPs in order to embezzle money from the publicly traded firm (RHFL) by passing them off as “loans” to conduit borrowers with poor credit histories, and in turn, to onwards borrowers, all of whom have been found to be ‘promoter linked entities’ i.e. entities associated/ linked with Noticee 2 (Anil Ambani)” .
The ‘chairperson of the ADA group’ status and his substantial indirect stake in RHFL’s holding company were exploited by Ambani to plan the scam.
In its order on Thursday, Sebi observed the careless way in which the promoter and management of the company approved loans totalling hundreds of crores to businesses with negligible to no revenue, cash flow, assets, or net value.
This implies that the ‘loans’ have a dark purpose. The fact that several of these debtors had close ties to the RHFL promoters raises even more suspicions about the scenario.
The majority of these borrowers eventually stopped making loan payments, which forced RHFL to stop making its own debt payments. As a result, the company was resolved under the RBI Framework, putting its shareholders who are the general public in a challenging situation.
In March of 2018, for instance, the share price of RHFL was approximately Rs 59.60. The share price had fallen to just Rs 0.75 by March 2020 as the scope of the fraud became apparent and the company ran out of resources.
Despite suffering large losses, more than 9 lakh owners still have shares in RHFL.
Former Reliance Home Finance Ltd. (RHFL) key personnel Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah are among the 24 entities that have been restrained; as a result of their involvement in the matter, Sebi has fined them.
Additionally, the regulator fined Ambani Rs. 25 crore, Bapna Rs. 27 crore, Sudhalkar Rs. 26 crore, and Shah Rs. 21 crore.
A fine of Rs 25 crore has also been levied on each of the remaining companies, which include Reliance Unicorn Enterprises, Reliance Exchange Next Lt, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, and Reliance Big Entertainment Private Ltd.
They have been subject to these sanctions because they either accepted the loans that were obtained illegally or served as middlemen to enable the unlawful withdrawal of monies from RHFL.
For allegedly syphoning off funds from the company, markets watchdog Sebi passed an interim order in February 2022 and restrained industrialist Anil Ambani, Reliance Home Finance Ltd., and three other individuals (Amit Bapna, Ravindra Sudhakar, and Pinkesh R Shah) from the securities market until further orders.
which companies are owned by anil ambani
Reliance Unicorn Enterprises, Reliance Exchange Next Lt, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, and Reliance Big Entertainment Private Ltd are among the other firms that have been hit with fines of Rs 25 crore apiece.
What are Anil Ambani’s shares?
List of Anil Ambani Group Stocks
| Name | LTP | 52W High |
| R Reliance Power B S | 29.75 | 34.54 |
| R Reliance Infrastructure B S | 220.28 | 308.00 |
| R Reliance Communications B S | 1.94 | 2.30 |
| R Reliance Home Finance B S | 3.90 | 5.80 |
What is the rank of Anil Ambani in India?
Anil Ambani and 24 other businesses are banned from the securities market by Sebi…
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