 "ADAG stocks crack up to 7% as Sebi bans Anil Ambani from markets for 5 yrs")
Sebi has also imposed a penalty of Rs 25 crore on Ambani
According to a PTI report, Sebi has barred Anil Ambani, and 24 other entities, from the securities market for a period of five years, to reprimand them for diversion of funds from the company.
Sebi has also imposed a penalty of Rs 25 crore on Ambani and restrained him from being associated with the securities market including as a director or Key Managerial Personnel (KMP) in any listed company, or any intermediary registered with the market regulator, for a period of 5 years, the report said.
It also barred Reliance Home Finance from the securities market for six months and imposed a fine of Rs 6 lakh.
Among individual stocks, Reliance Power share price fell 4.9 per cent (Rs 34.45 per share), Reliance Home Finance 4.9 per cent (Rs 4.46), and Reliance Infrastructure 14.2 per cent (Rs 201.95). These shares ended lower in the range of 5 per cent to 10 per cent.
Trading in shares of Reliance Communications, Reliance Capital, and Reliance Naval and Engineering remains suspended. By comparison, the BSE benchmark Sensex index ended 33 points higher at 81,086 level.
Why did Sebi ban Anil Ambani from stock markets?
Sebi’s ban on Anil Ambani came after the regulator found that Ambani, with the help of Reliance Home Finance’s (RHFL’s) key managerial personnel, orchestrated a fraudulent scheme to siphon-off funds from RHFL by disguising them as loans to entities linked to him.
This happened even as the Board of Directors of RHFL issued strong orders to stop such lending practices.
“This suggests a significant failure of governance, driven by certain key managerial personnel under the influence of Anil Ambani. We believe the company RHFL itself should not be held equally responsible as the individuals involved in the fraud. Further, the remaining entities have played the role of being either recipients of illegally obtained loans or conduits to enable illegal diversion of monies from RHFL,” Sebi said in its 222-page report.
First Published: Aug 23 2024 | 11:47 AM IST
