Sebi imposes five-year ban on industrialist Anil Ambani

Extreme step taken due to diversion of funds from RHFL

The market regulator has also levied a fine of ₹25 crore

The Securities and Exchange Board of India (Sebi) has imposed a five-year ban on industrialist Anil Ambani and 24 other individuals, including former key officials of Reliance Home Finance Limited (RHFL), from participating in the securities market. This decision follows an investigation revealing the diversion of funds from RHFL under Ambani’s leadership. The market regulator has also levied a fine of ₹25 crore on Ambani and prohibited him from holding any position as a director or Key Managerial Personnel (KMP) in listed companies or intermediaries registered with Sebi for five years.

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In addition to the penalties against Ambani, Sebi has barred RHFL from accessing the securities market for six months and imposed a ₹6 lakh fine on the company.

The 222-page final order by Sebi uncovered a fraudulent scheme led by Ambani and top executives at RHFL, involving the diversion of funds through loans to entities closely associated with him. Despite directives from RHFL’s Board of Directors to cease such practices and monitor corporate loans, the management disregarded these instructions, enabling the fraudulent activities. The diverted funds were channelled through credit-unworthy borrowers, all linked to Ambani, as part of a broader scheme orchestrated by him and his associates.