SEBI imposes fine of Rs 25 crore on Reliance Big Entertainment
In August this year, the market regulator had banned industrialist Anil Ambani and 24 other entities for five years for fund diversion from Reliance Home Finance Ltd (RHFL). SEBI also imposed a fine of Rs 25 crore on Ambani and banned him from holding any position in the securities market, including the roles of director or key managerial personnel in listed companies, for the same period. In the 222-page order, SEBI said Anil Ambani, with the help of key managerial personnel of RHFL, hatched a fraudulent scheme to siphon off funds from RHFL, which he presented in the form of loans to entities linked to himself.
The Board of Directors of RHFL issued strict instructions to stop such lending practices and regularly reviewed corporate loans, but the company's management ignored these orders. This reflects a significant failure of governance operated by some key managerial personnel under the influence of Anil Ambani,” it said. The other 24 entities sanctioned include former RHFL key executives Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah, the regulator imposed a fine of Rs 27 crore on Sudhalkar and Rs 21 crore on Shah.
The remaining entities – Reliance Unicorn Enterprises, Reliance ExchangeNext Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd and Reliance Big Entertainment Pvt Ltd – were fined Rs 25 crore each.
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