Ambani was fined Rs. 25 crore by the Securities and Exchange Board of India (SEBI), and he was prohibited from having any connection to the securities markets for a period of five years.
For the third straight session, shares of Reliance Power and Reliance Home Finance dropped to a 5% lower circuit. The dramatic drop occurs after promoter Anil Ambani was barred from the securities market for five years on August 22 by market regulator Securities and Exchange Board of India (SEBI).
Ambani and 24 other organizations—including former senior executives of Reliance Home Finance—were banned for allegedly stealing money from the business.
Reliance Power shares were locked at the lower circuit and trading at Rs 31.11 on the National Stock Exchange (NSE) at 10:20 am. Reliance Home Finance, which was trading at Rs 4 on the NSE, was likewise locked at the lower circuit.
Anil Ambani was fined Rs 25 crore by the Securities and Exchange Board of India (SEBI), and he was prohibited for five years from having any affiliation with the securities industry, including positions as directors or key managerial personnel (KMP) in listed companies or intermediaries that are registered with the regulator.
In addition, Reliance Home Finance has been fined Rs 6 lakh by SEBI and is not allowed to trade on the securities market for six months.
The regulator concluded in its 222-page final order that Ambani had carried out a fraudulent scheme to siphon off money from the mortgage lender and disguise it as a loan to entities affiliated with him, with the help of key managerial personnel at Reliance Home Finance. Regarding the regulator’s order, Reliance Power has provided an explanation.
“Neither Reliance Power Ltd. nor the proceedings before Sebi in which the Order is passed were parties to the notice. The Order makes no recommendations regarding Reliance Power Ltd. It stated that Anil Ambani had left the Reliance Power Ltd. board of directors in accordance with the interim order issued by SEBI on February 11, 2022, in connection with the same proceedings.
consequently, “the order dated August 22, 2024 passed by the SEBI has no bearing whatsoever on the business and affairs of Reliance Power Ltd,” the business stated.
According to a statement from Ambani’s representative, he has resigned from the boards of Reliance Power and Infrastructure in accordance with the interim order issued by SEBI on February 11, 2022.
“Ambani will take appropriate steps as legally advised after reviewing the final order dated August 22 passed by SEBI in the matter,” the statement read. Since both stocks have consistently closed at the five percent lower circuit throughout every session, the statement has not caused a slowdown in sales.
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