The Securities and Exchange Board of India (SEBI) has barred industrialist Anil Ambani from the securities market for five years, accusing him of orchestrating a fraudulent scheme to siphon off funds from Reliance Home Finance Ltd (RHFL). This decision follows Ambani’s 2020 bankruptcy declaration before a UK court, a stark contrast to the recent findings.
SEBI has not only prohibited Ambani from participating in the securities market but has also imposed a hefty penalty of ₹25 crore on him. The ban extends to any involvement in the market, including holding positions as a director or Key Managerial Personnel (KMP) in any listed company or intermediary registered with the regulator.
Reliance Home Finance itself has also faced repercussions, with a six-month ban from the securities market and a fine of ₹6 lakh. The actions stem from a broader investigation revealing serious lapses in governance within the company. Despite the Board of Directors of RHFL issuing strict directives to curb irresponsible lending practices and consistently reviewing corporate loans, the management under Ambani’s influence chose to ignore these warnings.
This regulatory crackdown highlights what SEBI describes as a “significant failure of governance,” driven by certain key managerial personnel under Ambani’s direction. Utilizing his position as Chairperson of the Anil Dhirubhai Ambani Group (ADA Group) and his substantial indirect shareholding in RHFL’s holding company, Ambani allegedly manipulated the company’s operations to execute the fraud.
SEBI has also levied substantial fines on other individuals and entities involved. Rakesh Bapna, Ravindra Sudhalkar, and Sanjeev Shah, key figures in the company, have been fined ₹27 crore, ₹26 crore, and ₹21 crore respectively. Furthermore, several entities linked to Reliance, including Reliance Unicorn Enterprises, Reliance Exchange Next Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, and Reliance Big Entertainment Pvt Ltd, have each been slapped with a ₹25 crore penalty.
This ruling by SEBI underscores the regulator’s firm stance against corporate misconduct and highlights the serious consequences for those found guilty of such violations.
