Market regulator SEBI has imposed a fine of Rs 6 lakh on Anil Ambani’s Reliance Home Finance in its order issued on August 23 and this company has been banned for 6 months. With this, SEBI has banned Anil Ambani for 5 years. 24 entities, including Anil, have also been banned.
SEBI has banned all of them from the stock market. In addition to this, SEBI also imposed a fine of Rs 25 crore. Following this ban, Anil Ambani will no longer be able to participate in the stock market. This is not the first time that SEBI has banned a big businessman. Before this, SEBI also banned Vijay Mallya and Mehul Choksi from entering the market.
When SEBI put the squeeze on Vijay Mallya the hardest
The SEBI order of June 2018 imposed a three-year ban on Vijay Mallya, restricting his participation in the securities market from June 1, 2018, to May 31, 2021. In addition, Mallya was barred from holding directorship or executive positions in listed companies for five years.
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Action was also taken against Choksi.
In February 2022, SEBI had banned Mehul Choksi from the securities markets for a year and imposed a fine of Rs 1.5 crore on him for violating insider trading rules in the Gitanjali Gems case, and in February 2020, the regulator imposed a total fine of Rs. 5 crore on him.
Why was action taken against Anil Ambani?
SEBI has said in its order that Anil Ambani, with the help of key management personnel of RHFL, had devised a fraudulent scheme to withdraw funds from RHFL, which he had concealed in the form of loans to institutions associated with him. Though the board of directors of RHFL had given strict instructions to stop such lending practices and had periodically scrutinised corporate borrowings, the company management ignored these orders. This shows that there is a significant failure in governance, which has been carried out under the influence of Anil Ambani.
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