Sebi Bars Anil Ambani & Others from Securities Market Over Fund Diversion

Shares of Anil Ambani-led group companies, including Reliance Power and Reliance Home Finance Ltd, fell sharply after Sebi barred Ambani and 24 others from the securities market for five years. Sebi found Ambani and key associates engaged in a fraudulent scheme to siphon off funds from Reliance Home Finance.

Shares of Anil Ambani-led group firms, such as Reliance Power and Reliance Home Finance Ltd, continued to hit their lower circuit limits on Tuesday. This follows the market regulator Sebi's decision to bar the industrialist and 24 others from the securities market for five years over fund diversion allegations.

On the BSE, Reliance Power's stock fell 4.98% to Rs 31.10—its lower circuit limit. Shares of Reliance Home Finance Ltd dropped 4.95%, hitting its lower circuit limit of Rs 4.03. However, Reliance Infrastructure's stock ended slightly higher, showing a 0.68% increase to Rs 207.85.

The stock downturns came after Sebi, in its 222-page order, found that Anil Ambani and his key associates orchestrated a scheme to siphon off funds from Reliance Home Finance Ltd, disguised as loans to entities linked with him. Sebi's investigation spanned FY19 to understand the depth of the financial irregularities. Besides, a fine of Rs 25 crore was imposed on Ambani, and additional penalties between Rs 21-25 crore were levied on 24 other entities involved.

(With inputs from agencies.)