Anil Ambani and Associates Barred by SEBI Over Fund Diversion
Anil Ambani and 24 other entities, including former key officials of Reliance Home Finance Ltd (RHFL), have been barred from the securities market by SEBI for five years due to fund diversion. This led to significant drops in shares of RHFL and other related companies.
- Country:
- India
Shares of companies led by Anil Ambani plummeted on Friday following SEBI's decision to bar him and 24 other entities from the securities market for five years. The regulatory action comes in response to the diversion of funds from Reliance Home Finance Ltd (RHFL).
RHFL's stock dropped 5.12% to Rs 4.45 on the NSE and 4.90% to Rs 4.46 on the BSE. Reliance Infrastructure shares also tumbled 10.83% to Rs 209.90 on the BSE and 8.89% to Rs 214.76 on the NSE, while Reliance Power fell 5% to Rs 34.45 and Rs 34.48 respectively on both exchanges.
SEBI has imposed a penalty of Rs 25 crore on Ambani and prohibited him from any association with the securities market, including directorial roles in listed companies, for five years. The regulator also barred RHFL from the securities market for six months and fined the company Rs 6 lakh. SEBI's investigation revealed that Ambani, with the aid of RHFL's key managerial personnel, executed a fraudulent scheme to siphon funds disguised as loans to entities linked to him.
(With inputs from agencies.)
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