Sebi Cracks Down on Financial Misconduct at RHFL

The Securities and Exchange Board of India (Sebi) has issued a Rs 129 crore penalty against Reliance Home Finance Ltd and associated individuals for illegal fund diversion. Failure to comply will result in asset seizure and potential imprisonment. Anil Ambani faces a considerable penalty and market ban.

The Securities and Exchange Board of India (Sebi) has taken decisive action against Reliance Home Finance Ltd (RHFL) and several associated entities for the illegal diversion of funds amounting to Rs 129 crore. The entities, including key former company officials, have been instructed to settle the amount within 15 days or face severe consequences, such as asset seizure and bank account attachment.

This development follows Sebi's comprehensive investigation, which uncovered that Anil Ambani, along with top executives Amit Bapna, Ravindra Sudhalkar, and Pinkesh Shah, orchestrated the fraud by siphoning off RHFL funds under the guise of loans. Sebi has subsequently barred Ambani and 24 others from the securities market for five years, imposing significant fines on them as well as on RHFL.

Further measures include Sebi's demands directed at other firms, such as Netizen Engineering and Gamesa Investment Management, for earlier fund diversions from RHFL. As part of wider enforcement actions, fines in the tens of crores and temporary bans from market activities have been issued. Sebi's firm response underscores its commitment to curbing financial misconduct.

(With inputs from agencies.)