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Reliance Power, Home Finance Hit Lower Circuit Limits After Sebi Ban

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By Rediff Money Desk, New Delhi   Aug 27, 2024 17:49

Shares of Reliance Power and Reliance Home Finance hit lower circuit limits after Sebi barred Anil Ambani and others from the securities market for five years due to fund diversion allegations.
Reliance Power, Home Finance Hit Lower Circuit Limits After Sebi Ban
Photograph: PTI Photo from the Rediff Archives
New Delhi, Aug 27 (PTI) Shares of Anil Ambani-led group firms -- Reliance Power and Reliance Home Finance Ltd -- continued to hit their lower circuit limits on Tuesday after markets regulator Sebi barred the industrialist and 24 others from the securities market for five years on charges of diversion of funds.

The stock of Reliance Power tumbled 4.98 per cent to Rs 31.10 -- its lower circuit limit -- on the BSE.

Shares of Reliance Home Finance Ltd dropped 4.95 per cent to hit the lower circuit limit of Rs 4.03.

However, the stock of Reliance Infrastructure ended 0.68 per cent higher at Rs 207.85.

Shares of Reliance Home Finance Ltd, Reliance Power, and Reliance Communications had hit their lower circuit limits on Monday as investors continued to desert the counters.

Reliance Infrastructure, Reliance Home Finance, and Reliance Power had slumped on Friday also. The stock of Reliance Home Finance and Reliance Power had hit lower circuit limits on Friday.

Sebi has imposed a penalty of Rs 25 crore on Ambani and restrained him from serving as a director or key managerial personnel (KMP) in any listed company or Sebi-registered entity for five years.

Besides, a fine ranging Rs 21-25 crore has been levied on 24 entities. Also, the regulator barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it.

After receiving multiple complaints alleging the diversion/siphoning of funds of Reliance Home Finance Ltd, Sebi conducted an investigation for the period of FY19 to ascertain any regulatory violations.

In its probe, Sebi found that Anil Ambani, with the help of RHFL's KMPs -- Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah -- have orchestrated a fraudulent scheme to "siphon off" funds from RHFL by disguising them as loans to entities linked to him.

Sebi, in its 222-page order on Thursday, noted the cavalier approach by the company's management and promoter in approving loans worth hundreds of crores to companies that had little to no assets, cash flow, net worth, or revenue.
Source: PTI
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