The Securities and Exchange Board of India (SEBI) has imposed a five-year ban on Anil Ambani and 24 other entities, barring them from participating in the securities market.
What Happened: SEBI’s decision was announced on Friday, following a detailed investigation into certain irregularities. Ambani and the other entities are now barred from buying, selling or dealing in securities in any manner, directly or indirectly, for the next five years. The ban is effective immediately.
The market regulator also imposed a fine of ₹25 crore on Ambani and fined Reliance Home Finance ₹6 lakh. The company is also barred from the securities market for six months.
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In its final report, the market regulator said that Ambani orchestrated a fraudulent scheme with the help of Reliance Home Finance’s key managerial personnel to siphon off funds from the company by structuring them as loans to entities linked to Anil Ambani.
SEBI in the order noted that although the company’s board of directors issued instructions to stop such lending practices, the company management did not listen to the orders showing management failure driven by several key managerial personnel under the influence of Anil Ambani, the market regulator said in its order.
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