SEBI Slaps ₹1 Crore Fine on Jai Anmol Ambani in Reliance Home Finance Case

The Securities and Exchange Board of India (SEBI) has imposed a ₹1 crore penalty on Jai Anmol Ambani, son of industrialist Anil Ambani, for negligence in approving corporate loans related to Reliance Home Finance. Additionally, a ₹15 lakh fine has been levied on ex-chief risk officer Krishnan Gopalakrishnan.

The Securities and Exchange Board of India (SEBI) has levied a fine of ₹1 crore on Jai Anmol Ambani, son of influential industrialist Anil Ambani, for lack of due diligence in clearing general-purpose corporate loans (GPCLs) associated with Reliance Home Finance. SEBI has also fined Krishnan Gopalakrishnan, the former chief risk officer of Reliance Home Finance, ₹15 lakh for his role in the loan approval process.

According to a SEBI order, both executives must settle the fines within 45 days. The order criticizes Ambani, stating, "Noticee 1, as Non-Executive director of the company, has taken the company in his own direction and has gone overboard in his role as Director. Noticee 1 in doing so, gives a hint of being motivated and definitely not in the interests of the shareholders and has not acted with due care and diligence, and has not maintained high ethical standards."

The regulatory body highlighted that Jai Anmol Ambani, a board member of Reliance Capital and Reliance Home Finance, failed to exercise appropriate caution during GPCL lending and subsequent loans within Reliance ADAG group companies, including Reliance Capital Limited. Similarly, Gopalakrishnan permitted several GPCL loans despite being cognizant of significant discrepancies in loan approvals.

In a related incident last month, SEBI barred Anil Ambani, three key company officials, and 23 associated companies from stock market trading for five years due to financial misconduct. SEBI's investigation revealed funds being diverted under the guise of loans to entities connected to Anil Ambani, resulting in significant regulatory breaches.

(With inputs from agencies.)