Anil Ambani banned from security market for 5 yrs, fined Rs 25 cr by Sebi

The investigation found the “existence of a fraudulent scheme, orchestrated by Noticee No 2 (Anil Ambani) and administered by the KMPs of RHFL, to siphon off funds from the public listed company (RHFL) by structuring them as ‘loans’ to credit unworthy conduit borrowers, and in turn, to onward borrowers, all of whom have been found to be ‘promoter linked entities’ that is, entities associated/ linked with Noticee 2 (Anil Ambani)”.

The investigation, covering the financial year 2018-19, was triggered by multiple complaints and reports about the possible misappropriation of RHFL’s resources. Sebi’s findings highlighted a glaring failure in corporate governance at RHFL, where the management, under Ambani’s influence, blatantly disregarded the board of directors’ directives to curb questionable lending practices. The order makes it clear that while the company was manipulated, the fraudulent activities were primarily driven by certain key individuals within the organisation.

“Sebi was in receipt of multiple complaints/ reports alleging diversion/ siphoning of funds of  Reliance  Home  Finance  Ltd.