Sebi Cracks Down on Fund Diversion with Heavy Penalties

The Securities and Exchange Board of India (Sebi) has imposed a Rs 52 crore penalty on two entities for failing to clear fines related to the illegal diversion of funds from Reliance Home Finance Ltd. The entities face asset attachment if dues are not paid within 15 days.

The Securities and Exchange Board of India (Sebi) has intensified its actions against financial irregularities by imposing a Rs 52 crore penalty on two entities implicated in the illegal diversion of funds from Reliance Home Finance Ltd (RHFL). The penalties follow the entities' failure to settle fines levied in August this year.

The market regulator has issued strict warnings, mandating Mohanbir Hi-Tech Pvt Ltd and Indian Agri Services Pvt Ltd to comply with the payment orders within 15 days. Should they fail to do so, Sebi will initiate procedures to attach and sell the entities' moveable and immovable assets.

This latest enforcement action comes as part of a broader crackdown on RHFL and its associates. Last week, Sebi demanded Rs 129 crore from six related entities, and earlier in November, it sought Rs 154.50 crore from additional parties, including a former key entity, CLE Pvt Ltd. Industrialist Anil Ambani also faces a separate penalty and a five-year market ban.

(With inputs from agencies.)