Shares of Anil Dhirubhai Ambani Group (ADAG) including Reliance Home Finance and Reliance Power continued their slide on Monday following regulatory action against Anil Ambani and some Reliance Home Finance employees. Reliance Home Finance share price remained 5% below the limit price while Reliance Power share price also opened 5% below the limit price. Reliance Infrastructure shares fell over 1% while Reliance Communication share price declined 5%.
Trading in Reliance ADAG’s other two stocks – Reliance Capital and Reliance Naval and Engineering – remained suspended during the trading session on Monday.
The sharp drop in ADAG shares came after India’s capital market regulator, the Securities and Exchange Board of India (SEBI), banned Anil Ambani and 24 other people, including some Reliance Home Finance employees, for five years. ADAG shares lost as much as 10% on Friday.
SEBI order on Reliance Home Finance
In an order dated August 22, SEBI banned industrialist Anil Ambani and 24 other persons, including former senior executives of Reliance Home Finance, from participating in the securities market for a period of five years because they were involved in the “misallocation of company funds”.
The regulator also imposed a fine of ₹25 crore against Anil Ambani and barred him from engaging in any activity in the Indian securities market, including as a director or key managerial personnel (KMP) in any listed company. He is alleged to have hatched a scheme to “divert” funds from Reliance Home Finance, a listed subsidiary of the conglomerate Reliance Group, of which he is chairman.
Statement by Anil Ambani
Anil Ambani is investigating the Sebi in a case of alleged misappropriation of funds and will take appropriate next steps as legally recommended, his spokesman said in a statement on Sunday.
Ambani has resigned from the board of Reliance Infrastructure Ltd and Reliance Power Ltd pursuant to Sebi’s interim order dated February 11, 2022 in the Reliance Home Finance Ltd matter, the spokesperson said in a statement.
He “has been complying with the said temporary restraining order (dated February 11, 2022) for two and a half years,” the statement continued.
Statement by Anil Ambani
Anil Ambani is investigating the Sebi in a case of alleged misappropriation of funds and will take appropriate next steps as legally recommended, his spokesman said in a statement on Sunday.
Ambani has resigned from the board of Reliance Infrastructure Ltd and Reliance Power Ltd pursuant to Sebi’s interim order dated February 11, 2022 in the Reliance Home Finance Ltd matter, the spokesperson said in a statement.
He “has been complying with the said temporary restraining order (dated February 11, 2022) for two and a half years,” the statement continued.
In a separate statement, Mumbai-listed Reliance Infrastructure Ltd said it was “neither a party nor a participant in the proceedings before Sebi in which the order was passed. No directions are contained in the order against Reliance Infrastructure Ltd.”
“Mr. Ambani has resigned from the board of Reliance Infrastructure Ltd pursuant to the interim order dated February 11, 2022 passed by Sebi in the same proceedings. Therefore, the order dated August 22, 2024 passed by Sebi has no impact whatsoever on the business and affairs of Reliance Infrastructure Ltd,” it said.
Reliance Power also issued a similar statement saying that Ambani’s retirement in 2022 was known and that the recent Sebi order had no impact on it.
