Home Stock exchange anil ambani: Sebi bars Anil Ambani, RHFL, 3 securities market executives

anil ambani: Sebi bars Anil Ambani, RHFL, 3 securities market executives

Mumbai: The Securities and Exchange Board of India (Sebi) on Friday banned Reliance Home Finance Ltd (RHFL), industrialist Anil Ambani and three others from trading directly or indirectly in the securities market for allegedly engaging in fraudulent business-related activities. The regulator has also barred Ambani and the three individuals from associating with any listed company or intermediary or acting as a director or promoter of any listed company until further notice.

The others are three of Reliance Home’s senior executives, Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.

Sebi alleged that the company engaged in embezzlement and misrepresentation of books of accounts and falsification of financial statements, resulting in the non-disclosure of true and fair information to the general public.

“..it should be noted that the investigation of Sebi has already brought to light how Noticee no. 2(Anil Ambani), (the Promoter/Chairman and the person under whose control and influence the Company acted), behaved beyond his attributions by sanctioning loans in flagrant derogation from the standards (internal and regulatory) and also by going against the explicit guidelines of the board of directors under which such loans should have been prevented from being sanctioned, he further sanctioned GPCL (general purpose corporate loan) at various related entities,” Sebi said in his late-released 100-page order. Friday.

“Such a fault on the part of Noticee no. 2 (Anil Ambani) as Chairman of the company senses the fraudulent intent of the senior management of the company, firstly, to divert funds borrowed from the company intended to be advanced to genuine third party borrowers to the coffers of various entities of the promoter group under the cover of a series of false loans GPC (general objective of the company), then to cover the losses and NPA (non-performing asset) resulting from these transactions by concealing the real financial health of the company from the shareholders and the general investing public, who could never know the real financial situation of RHFL by looking at the prepared books of accounts presented to them through the stock exchanges,” said SK Mohanty, a full-time member of Sebi, in his order.

Reliance Home Finance could not be reached for comment.

The regulator said the other three individuals, who were senior executives (KMPs) of the company, allegedly colluded with senior management and actively associated with the embezzlement of funds from Reliance Home.

These executives also allegedly misrepresented accounts as well as false disclosures to the public, Sebi said.