Shares of penny stock Reliance Home Finance hit the 5% lower circuit to a low of Rs 4.46 on BSE. Similarly, shares of retail favourite Reliance Power, which has almost doubled in the last one year, also fell 5% to Rs 34.45.
Reliance Infrastructure shares fell up to 14% to the day’s low of Rs 202 on BSE. Trading in Reliance Communications, Reliance Capital, and Reliance Naval and Engineering remains suspended.
Also read | Sebi bans Anil Ambani, 24 other entities from securities market for 5 years
In its 222-page long order, Sebi investigation concluded that key managerial personnel of Reliance Home Finance (RFHL), including Anil Ambani, siphoned off funds from the listed company (RHFL) by structuring them as ‘loans’ to credit unworthy conduit borrowers, and in turn, to onward borrowers, all of whom have been found to be ‘promoter linked entities’.Besides barring Ambani and 26 other entities, including former key officials of Reliance Home Finance from the securities market for five years, Sebi has imposed a penalty of Rs 25 crore on Ambani.The industrialist, who had declared bankruptcy before a UK court in February 2020, has also been restrained from being associated with the securities market including as a director or Key Managerial Personnel (KMP) in any listed company, or any intermediary registered with the market regulator, for a period of five years.Also, the regulator barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it.
Sebi noted that Ambani can be said to be the prime orchestrator of the scheme considering that the diversion of monies were to entities that were directly or indirectly linked to him or the ADA group.
“His own direct role in this scheme is clear from the approvals granted to several GPC loans disregarding the multiple deviations recorded in the CAMs. He has in his replies sought to distance himself from the aforesaid diversion by claiming that the company was Final Order in the matter of Reliance Home Finance Limited Page 177 of 222 professionally run and that he had no involvement in the same and that loans, if any, were only ‘confirmed’ by him in the capacity of Chairman of the holding company. However, the facts and circumstances brought out above run contrary to his claims,” Sebi said in the order.