SEBI imposed ban and penalty on Anil Ambani & his Companies
Anil Ambani, one of India's best-known businessmen and chairman of Reliance Group, has been banned from the securities market for five years and fined for Rs. 25 crore by the SEBI on charges of diversion of funds. The ban means that he and the other 24 will not be able to access the securities market and are prohibited from buying, selling or otherwise dealing in securities, directly or indirectly.
The SEBI alleged fund diversion from Reliance Home Finance (RHFL), a former subsidiary of Reliance Capital. SEBI started investigating RHFL, a non-banking finance company (NBFC), which focussed on housing loans, loan against property and construction finance after receiving multiple complaints/reports of alleged diversion or siphoning off funds within the company. The major promoter of RHFL was Reliance Capital Ltd (RCL), with a total shareholding of 47.91 percent. Ambani was also the promoter and non-executive and non-independent director of RCL during FY2018-19.
SEBI found that the loans extended by RHFL to credit unworthy corporates significantly increased from Rs. 3,742.60 crore in 2017-18 to Rs. 8,670.80 crore in 2018-19.
