SEBI Bars Anil Ambani and 24 Others From Securities Market Over Fraudulent Fund Diversion

SEBI has barred Anil Ambani and 24 individuals from the securities market for five years due to fund diversion from Reliance Home Finance Ltd. Ambani, along with KMPs, orchestrated a fraudulent scheme. Fines have been imposed on several entities, highlighting governance failures and significant financial losses for shareholders.

In a significant move, India's market regulator SEBI has barred industrialist Anil Ambani and 24 others from the securities market for five years. The action comes following charges of fund diversion from Reliance Home Finance Ltd (RHFL).

SEBI has also imposed a penalty of Rs 25 crore on Ambani, restraining him from serving as a director or Key Managerial Personnel (KMP) in any listed company or SEBI-registered entity for the next five years. Additionally, penalties ranging from Rs 21 crore to Rs 25 crore have been levied on 24 other entities associated with the scheme.

The investigation revealed that Ambani, aided by RHFL's KMPs, orchestrated a fraudulent scheme to siphon off funds by disguising them as loans. The fallout has left over 9 lakh shareholders facing significant financial losses, with RHFL's share price plummeting from Rs 59.60 in March 2018 to just Rs 0.75 by March 2020.

(With inputs from agencies.)