In an August 22 order, Sebi barred Anil Ambani for orchestrating a fraudulent scheme to siphon-off funds from RHFL by disguising them as loans to entities linked to him, with the help of company’s key managerial personnel
Industrialist Anil Ambani has filed an appeal with the Securities Appellate Tribunal (SAT) challenging the Securities and Exchange Board of India (Sebi) order banning him from the securities market for five years for alleged diversion of funds from Reliance Home Finance (RHFL), according to a Financial Express report.
The tribunal, as per the report, will hear Ambani’s appeal for admission of the case on October 18. Ambani has challenged the entire ruling, requesting a halt to his debarment and Rs 25-crore fine.
The appeal was probably filed last week, along with an application for a stay on Sebi’s entire order, a source told Financial Express.
In an August 22 order, Sebi barred Anil Ambani for orchestrating a fraudulent scheme to siphon-off funds from RHFL by disguising them as loans to entities linked to him, with the help of company’s key managerial personnel.
Sebi had imposed a Rs 25 crore penalty on Ambani and restrained him from being associated with the securities market including as a director or key managerial personnel in any listed company or any intermediary registered with the regulator, for five years.
“The facts of this case are particularly disturbing since they reveal a complete breakdown of governance in a large, listed company, apparently orchestrated by and/or at the behest of the promoter, aided by the indulgent KMPs of the company,” Sebi had said in the order.
Sebi also barred 24 other entities including former key officials of RHFL--Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah for five years. A fine of Rs 27 crore was levied on Bapna, Rs 26 crore on Sudhalkar and Rs 21 crore on Shah.
The market regulator also banned RHFL from the securities market for a period of six months and levied a fine of Rs 6 lakh.
RHFL and Shah have also filed separate appeals with the SAT against the Sebi order, which are scheduled to be heard on October 17, sources cited in Financial Express report said. These appeals were likely filed with the tribunal two weeks back.
Following several complaints of alleged funds diversion in RHFL during FY19, Sebi investigated the matter and found that Ambani “is the mastermind behind the fraudulent scheme by preponderance of probability”.
(With inputs from PTI)