SEBI Slaps Rs 1 Crore Fine On Anil Ambani's Son Anmol Ambani In Reliance Home Finance Case

Reliance Home Finance Case: The penalties stem from a broader investigation by SEBI, which, in August, had barred Anil Ambani and 24 others from participating in the securities market for five years

SEBI noted that Anmol Ambani, who was a board member of Reliance Home Finance, had approved GPCL loans despite clear instructions from the company’s board of directors to avoid such approvals.

Source : PTI

The Securities and Exchange Board of India (SEBI) on Monday imposed a penalty of Rs 1 crore on Anmol Ambani, son of industrialist Anil Ambani, for failing to exercise due diligence while approving general-purpose corporate loans (GPCL) in the Reliance Home Finance matter. In addition to the penalty on Anmol Ambani, SEBI levied a Rs 15 lakh fine on Krishnan Gopalakrishnan, the former Chief Risk Officer of Reliance Housing Finance, for his role in the case. Both individuals have been directed to pay the fines within 45 days, according to SEBI's official order.

The penalties stem from a broader investigation by SEBI, which, in August, had barred Anil Ambani and 24 others from participating in the securities market for five years. This ban was part of a case related to the diversion of funds from Reliance Home Finance Ltd, for which Anil Ambani was also fined Rs 25 crore.

In its order, SEBI highlighted that Anmol Ambani, who was a board member of Reliance Home Finance, had approved GPCL loans despite clear instructions from the company’s board of directors to avoid such approvals. Specifically, on February 14, 2019, Anmol sanctioned a Rs 20 crore loan to Accura Productions Private Limited, just days after the board had directed management on February 11 not to issue further GPCL loans.

SEBI criticised Anmol's actions, stating, "The noticee 1 (Anmol Ambani), as non-executive director of the company, has taken the company in his own direction and has gone overboard in his role as director... and has not acted with due care and diligence, and has not maintained high ethical standards."

Further, SEBI pointed out that Anmol, who also held positions on the boards of Reliance Capital and other Reliance ADAG group companies, failed to exercise reasonable due diligence concerning the lending practices. These GPCL loans were reportedly onward-lent to other ADAG group entities, including Reliance Capital.

In Gopalakrishnan's case, SEBI noted that he had approved various GPCL loans and was aware of significant deviations in the credit approval processes. As the Chief Risk Officer of Reliance Housing Finance, he was expected to follow due process, adhere to the company's code of conduct, and act in the best interest of stakeholders. Both Anmol Ambani and Gopalakrishnan were found to have violated SEBI's Listing Obligations and Disclosure Requirements (LODR) rules.