• Source:JND
Add as a preferred

Anil Ambani Group Stocks:  Shares of Anil Ambani-led group companies including Reliance Power and Reliance Home Finance Ltd continued to trade near their lower circuit limits on Tuesday after market regulator Sebi barred the industrialist and 24 others from entering the securities market for five years on charges of diverting funds.

Reliance Power shares fell 4.98 percent to Rs 31.10, their lower circuit limit, on the BSE. Reliance Home Finance Ltd fell 4.95 percent to touch a low of Rs 4.03.

However, Reliance Infrastructure shares ended 0.68 percent higher at Rs 207.85. Shares of Reliance Home Finance Ltd, Reliance Power, and Reliance Communications hit their lower circuit limits on Monday.

Also read: India-Oman Free Trade Pact Talks At Advanced Stage: Official

Reliance Infrastructure, Reliance Home Finance, and Reliance Power continued their downward spiral on Friday. Shares of Reliance Home Finance and Reliance Power hit their lower circuit limits on Friday.

Sebi has imposed a penalty of Rs 25 crore on Ambani and barred him from acting as a director or key management personnel (KMP) of any listed company or Sebi-registered entity for five years.
In addition, 24 entities have been fined Rs 21-25 crore. The regulator also banned Reliance Home Finance from the securities market for six months and fined it Rs 6 lakh.

After receiving multiple complaints alleging the diversion or siphoning of Reliance Home Finance Limited funds, Sebi investigated for the financial year to ascertain any regulatory violations. Sebi found in its investigation that Anil Ambani, with the help of RHFL's KMPs -- Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah -- has hatched a fraudulent scheme to "siphon off" funds from RHFL to entities linked to him in the guise of loans.

In its 222-page order on Thursday, Sebi noted the cavalier approach of the company's management and promoters in approving loans worth hundreds of crores to companies that had little or no assets, cash flow, net worth, or revenue.

Also Read: Unified Lending Interface: RBI To Launch UPI-Like Platform For Instant Loan; Know How It Will Work

(With agencies input)