MUMBAI: Market regulator SEBI late on Friday banned Anil Ambani, three of his associates and Reliance Home Finance, one of his former group companies, from the market for three months for misusing funds of the company and diverting it to other group entities to pay off debt.
Ambani and the others – Amit Bapna, Ravindra Sudhalkar, Pinkesh R Shah – were also restrained from associating with any listed entities.
The case relates to misuse of funds of Reliance Home Finance, for which its then auditors Price Waterhouse & Co (PwC) had refused to sign the annual accounts and then resigned.
Ambani, Amit Bapna, Ravindra Sudhalkar, Pinkesh R Shah and Reliance Home Finance “are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders”. Sebi also said that Ambani, Bapna, Sudhalkar and Shah were “restrained from associating themselves with any intermediary registered with Sebi, any listed public company or acting as directors/promoters of any public company which intends to raise money from the public, till further orders.”
In the 100-page order, S K Mohanty, Sebi whole time member, noted that the origin of the proceedings could be traced to multiple sources which included a letter of resignation by PwC to Reliance Home Finance as its statutory auditor citing various grounds and reasons. Sebi had also received complaints from people alleging siphoning off/diversion of funds of the company by its promoters and the management.
