Sebi bans Anil Ambani from market for five years

MUMBAI: The markets watchdog Securities and Exchange Board (Sebi) has banned Anil Ambani and 24 others, including former key officials of Reliance Home Finance, from the securities market for five years charging them with fund diversion by creating a “fraudulent scheme to siphon off money from the company by structuring it as loans to credit-unworthy borrowers.”

The Rs 104 crore cumulative fine on the individuals along with the Rs 150.6 crore cumulative fine on six group companies make this the highest ever fine slapped by the regulator on rule breakers.

Sebi has imposed a Rs 25 crore fine on the already bankrupt Ambani, who has no cash generating entities, except Reliance Infra, under his control now after Reliance Capital was also sent to the bankruptcy court a few years ago and has since been acquired by the holding company of Indusind Bank.

Apart from Ambani, those debarred and heavily fined include the former officials of Reliance Home Finance — Amit Bapna, Ravindra Sudhalkar and Pinkesh Shah. Bapna, Sudhalkar and Shah have been fined Rs 27 crore, Rs 26 crore and Rs 21 crore respectively, Sebi said in a late Thursday night order.

While the fines on these individuals total Rs 104 crore, those on the companies total Rs 150 crore, taking the overall fine to Rs 254 crore. That apart, Reliance Home Finance was slapped with a Rs 6 lakh fine and barred for six months.