Security Exchange Board of India (SEBI) bans Anil Ambani for his inappropriate practices in the share market for the next five years. He used his presence in Reliance Home Finance Limited to manipulate the market. SEBI conducted a thorough investigation and concluded a 222-page order banning him from the market. SEBI also put a fine of Rs. 25 Crores on him. The reports after the investigation are shocking. According to sources, 24 other entities also get banned from the market.
Why SEBI Banned Anil Ambani From The Security Market?
SEBI banns Anil Amabni from the security market for his fund diversion practices in RHFL. It is a publicly listed company on SEBI and stands for Reliance Home Finance Limited. SEBI’s detailed investigation clarifies the misuse of the funds from the company. The SEBI’s past investigation in the financial year 2018-19 also raised several questions. A lot of complaints and reports pointed out something unfair going on within the company. The current investigation clarifies that the fraudulent activities have a high involvement of the top individuals in the company.
The management allowed the diversion of the funds under Ambani’s influence. Under this diversion, the company provided loans to entities that were not worthy. According to the sources, these entities have a link with RHFL’s promoters. Thus, these entities used the funds for the purpose other than the company’s use. There is also no repayment of these loans indicating fund diversion and misuse. The company had an increasing debt default with no repayments.
SEBI punished Anil Ambani for manipulating the funds with a fine of Rs. 25 Crores He cannot act as any key managerial personnel or director in any publicly listed company for the next five years. Thus, he is completely banned from the security market for the next five years. Apart from that, SEBI also finds the company Reliance Home Finance Limited responsible for the act. Thus, it removed the company from the securities market for the next six months with a fine of Rs. 6 lakhs. Apart from Anil Ambani and RHFL, 24 other entities or individuals are at fault.
They also have a heavy fine. SEBI fined RHFL official Amit Bapna Rs. 27 Crores, Ravindra Sudhalkar Rs. 26 Crores, and Pinkesh R Shah Rs. 21 Crores fine. Companies like Reliance Unicorn Enterprises, Reliance Commercial Finance Limited, and Reliance Big Entertainment Private Limited charged Rs. 25 crores. The shareholders of the company will have a negative impact from it. Stay tuned for more information.