Punjab Newsline, Mumbai, August 23-
India's market regulator, the Securities and Exchange Board of India (Sebi), has imposed a five-year ban on industrialist Anil Ambani and 24 others, including top executives of Reliance Home Finance Ltd. (RHFL), from participating in the securities market. This action follows a probe into RHFL, where funds were allegedly diverted through questionable loans, leading to significant losses and raising concerns among investors.
In addition to the ban, Sebi has levied a Rs 25CR penalty on Ambani and barred him from holding any directorial or key managerial positions in listed companies or intermediaries registered with the regulator for five years.
RHFL has been barred from the securities market for six months, and fined Rs. 600,000.
Sebi's investigation uncovered instances of financial mismanagement at RHFL, where Ambani and key executives were found to have channeled funds through Guaranteed Payment Credit (GPC) loans. These loans were extended to entities with weak financial profiles—entities that, under normal circumstances, would not have qualified for such substantial financial support.