Ambani banned from the capital market for five years!
Ambani Banned from the Capital Market
Anil Ambani, brother of India’s richest man Mukesh Ambani, is among 25 businessmen recently banned from the capital market by the Securities and Exchange Board of India (SEBI) for at least five years. They allegedly diverted capital market funds to unauthorized businesses.
According to NDTV, SEBI has found evidence of illegal withdrawal of funds against Anil Ambani’s Reliance Home Finance. For that he has been banned from the stock market for five years, fined Rs. 25 crores. According to the 222-page directive, Anil Ambani cannot hold any other position related to the management of any SEBI-listed company for the next five years. His company officials Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah have also faced punishment.
Ambani Banned
As a result of this ban, Anil Ambani and other businessmen will not be able to buy and sell shares or any other transaction. A Reliance Group spokesperson was not immediately available for comment when contacted.
Reliance invests in a number of business sectors, such as telecommunications, infrastructure, & financial services. The head of Reliance Industries is Mukesh Ambani. The two brothers engaged in a fight after their father, Dhirubhai Ambani, passed away. They separated at one point. Mukesh was once younger than Anil Ambani. However, he had once gone bankrupt for a wrong investment.
The three main companies of the Anil Ambani-led Reliance Group are Reliance Communications, Reliance Capital and Reliance Infrastructure. All three companies are in the process of bankruptcy or debt restructuring.
According to the SEBI report, Anil Ambani and officials disguised company funds as loans to siphon money to associate businesses.
A few years ago, Sebi banned Reliance’s business associate Future Retail (FRL) head Kishore Biyani, Anil Biyani and Future Corporate Resources (FCRL) and FCRL Employee Welfare Trust for one year for taking illegal advantage in the stock market.
Shares of Reliance Home Finance fell 5 percent by midday on Thursday. Apart from this, the share price of Reliance Infrastructure has decreased by about 13 percent and the share price of Reliance Power has decreased by 5 percent.
Basically, Sebi has charged Anil Ambani a second time. These include hiding information from shareholders by faking financial records and transferring large company funds to unauthorized fields at the risk of the business and its shareholders.
The regulator states that Reliance Home Finance lent more than Rs 9,000 crore to unknown borrowers who failed to repay the loans.
