The three others barred by SEBI are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
New Delhi: Securities and Exchange Board of India (SEBI), on Friday (February 12), barred Reliance Home Finance, its promotor and industrialist Anil Ambani and three others from buying, selling or dealing in securities.
The restricted cannot deal in securities either directly or indirectly, in any manner whatsoever until further orders, SEBI noted. The decision to restrain Ambani and others individuals from the securities market was taken for allegedly siphoning off funds from the company. The three others are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
In a 100-page interim order, SEBI also noted that the individuals will not be able to associate “themselves with any intermediary registered with Sebi, any listed public company or acting directors/ promoters of any public company which intends to raise money from the public till further orders.”
Overall, the order related to the alleged siphoning off of funds from the company will impact a total of 28 individuals and entities.
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The SEBI probe looked into the manner in which loans were dispersed by Reliance Home Finance Ltd (RHFL) during 2018-19 to several borrowing entities, a PTI report said.
The market regulator noted that “the root of the present proceedings can be traced to multiple sources, inter alia, a letter of Price Waterhouse & Co addressed to RHFL intimating their resignation as the statutory auditor of the company; and complaints received by Sebi alleging siphoning off/diversion of funds of RHFL by promoters and management of the company.”
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SEBI pointed out that there were multiple Fraud Monitoring Returns from banks alleging, among others, that funds borrowed by RHFL from different lenders were partly used towards repayment of loans.
“It is noted that one individual person Anil Ambani, who controls the company due to his position as a promoter and controlling shareholder by way his direct and indirect shareholding, is seen to be exercising unfettered powers…,” SEBI said.
– With PTI inputs.
