Anil Ambani to Review Securities Market Ban and Chart Legal Response

Reliance Group chairman Anil Ambani is carefully considering his next steps after the Securities and Exchange Board of India (SEBI) imposed a ban on him from participating in the stock market, along with a hefty fine of Rs 25 crore. The penalty stems from allegations of fund misappropriation related to Reliance Home Finance Ltd (RHFL), previously a subsidiary of Reliance Capital.

Ambani's spokesperson confirmed that he has stepped down from his roles on the boards of Reliance Infrastructure and Reliance Power following SEBI's interim order dated February 11, 2022. The spokesperson also noted that Ambani is currently reviewing the final order issued on August 22, 2024, and will proceed with appropriate legal measures.

Reliance Infrastructure, in a separate statement, emphasized that the SEBI order does not involve the company directly and has no impact on its operations. The company highlighted that Ambani's resignation was in response to the earlier interim order and reaffirmed that the latest SEBI directive has no influence on its business activities.

Reliance Power echoed this stance, asserting that the SEBI order does not pertain to the company and does not affect its business affairs. Ambani’s resignation from its board was also linked to the February 2022 interim order.

The August 22 SEBI order includes a penalty of Rs 624 crore imposed on 27 individuals and entities, including Anil Ambani, his group firms, and former directors, for the alleged siphoning of funds from RHFL. Additionally, SEBI has barred Ambani and 24 others from accessing the securities market and holding key positions in any listed company or its affiliates for the next five years.

As Anil Ambani evaluates his legal options, the financial world awaits his response to this significant regulatory development.