In a media statement released on behalf of Mr. Anil D. Ambani, a spokesperson addressed the recent decision by the Securities and Exchange Board of India (SEBI) to impose a five-year ban on Anil Ambani and 24 other entities from participating in the securities market. The statement highlighted that Anil Ambani had resigned from the boards of Reliance Infrastructure Limited and Reliance Power Limited in compliance with SEBI’s interim order dated February 11, 2022, related to the ongoing investigation into Reliance Home Finance Limited (RHFL). Ambani has adhered to this order for over two and a half years.
The spokesperson emphasized that Anil Ambani is currently reviewing SEBI’s final order dated August 22, 2024, and will take appropriate legal steps as advised by his legal team. The order not only prohibits Ambani from holding any directorial or key managerial positions in listed companies or intermediaries registered with SEBI for five years but also imposes a ₹25 crore penalty on him.
SEBI’s investigation concluded that Ambani, along with 24 other entities, was involved in a fraudulent scheme that diverted funds from RHFL by disguising them as loans to entities connected to him. The regulator found that despite directives from RHFL’s Board of Directors to cease such lending practices, the management ignored these orders, indicating a severe governance failure influenced by key managerial personnel under Anil Ambani’s direction.
The implications of this order are significant, as it reflects ongoing scrutiny of corporate governance practices within companies linked to Anil Ambani. The case has raised concerns about the management of public funds and the responsibility of corporate leaders in ensuring compliance with regulatory standards.
As the situation unfolds, Anil Ambani’s spokesperson has assured that he will pursue all available legal options to address the issues raised in SEBI’s final order.
