The Securities and Exchange Board of India (SEBI) has barred industrialist Anil Ambani and 24 other entities, including former officials of Reliance Home Finance Ltd (RHFL), from the securities market for five years. SEBI has also imposed a Rs 25 crore penalty on Ambani, with the total fines exceeding Rs 625 crore.
The regulator’s investigation revealed significant misuse of funds under Ambani’s leadership, involving fraudulent loans disbursed as general-purpose working capital. These loans were to unworthy borrowers linked to Ambani, resulting in the erosion of RHFL’s finances and its default on payment obligations.
Following the SEBI order, shares of Ambani’s group companies plummeted, with Reliance Power down 5%, Reliance Infra 10.4%, and RHFL 4.90%. SEBI’s action highlights severe breaches in securities laws and undermines investor trust.
