Kumar Bahukhandi
Market regulator SEBI has banned industrialist Anil Ambani from the stock market for 5 years in the case of fund embezzlement. Ambani has also been fined Rs 25 crore. He has also been banned from being a director in any listed company.
Apart from him, 24 other entities including former chief officers of Reliance Home Finance (RHFL) have been banned. They have been banned for 6 months and fined Rs 6 lakh.
SEBI has issued a 222-page order in this regard. Investigation has revealed that Anil Ambani embezzled money with the help of RHFL officials. He used the funds himself, but showed that these funds were given as loans to companies associated with him.
Important points related to SEBI’s order
The board of directors had given instructions to stop such loans and regularly review corporate loans, but the company’s management ignored these orders.
SEBI said that given the circumstances, RHFL should not be held equally responsible as the individuals involved in the fraud. While other entities helped in fund diversion.
Shares fall by up to 14%
After SEBI’s ban, Anil Ambani’s company Reliance Infra, Reliance Home Finance and Reliance Power have seen a decline. Reliance Infra has seen the maximum decline of about 14%, Reliance Home Finance has seen a decline of 5.12% and Reliance Power has seen a decline of 5.01%.
