NEW DELHI:
Anil Ambani
is reviewing a Sebi order that imposed a monetary penalty and banned him from participating in the securities market for five years in connection with an alleged fund diversion case and will take appropriate next steps based on legal advice, according to his spokesperson on Sunday.
The spokesperson in response to the August 22 ruling that prohibited him and 24 others from participating in the
capital market
said that: “Mr Ambani is reviewing the final order dated August 22, 2024 passed by Sebi in the said matter, and will take appropriate next steps as legally advised.”
The regulatory body had additionally levied a penalty amounting to Rs 25 crore on Ambani, saying he orchestrated a scheme to “siphon off” funds from Reliance Home
Finance
, a publicly traded subsidiary of the Reliance Group conglomerate, where he holds the position of chairman.
The ban prevents them from engaging in any direct or indirect transactions related to buying, selling, or dealing in securities.
Ambani had stepped down from the board of
Reliance Infrastructure Ltd
and
Reliance Power Ltd
, following Sebi’s interim order dated February 11, 2022, which was related to matters concerning
Reliance Home Finance Ltd
, the spokesperson said in a statement.
He said Ambani “is in compliance with the said interim order (of February 11, 2022) for the last two and half years.”
Reliance Infrastructure Ltd, a Mumbai-based listed company, issued a separate statement clarifying that it “was not a noticee or party to the proceedings before Sebi in which the order is passed. No directions are given in the order against Reliance Infrastructure Ltd”.
“Mr Ambani had resigned from the board of directors of Reliance Infrastructure Ltd pursuant to the interim order dated February 11, 2022 passed by Sebi in the same proceedings. Therefore, the order dated August 22, 2024 passed by Sebi has no bearing whatsoever on the
business
and affairs of Reliance Infrastructure Ltd,” the statement added.
Similarly, Reliance Power, another listed company within Anil Ambani’s group, also released a statement stating that Ambani had resigned in 2022 and that the recent Sebi order has no bearing on it.
Sebi in an order issued on August 22, alleged that a deceptive scheme was used to divert funds from Reliance Home Finance, a company that offers housing and construction loans. The regulator stated that the funds were structured as loans to borrowers with poor credit, despite their inability to repay the loans.
Majority of these borrowers had connections to the company’s “promoters”, Sebi claimed.
(With inputs from PTI)
