Capital markets regulator, the Securities and Exchange Board of India, has restrained Anil Ambani from the securities market until further orders for alleged fraudulent activities related to Reliance Home Finance Ltd (RHFL).

In an 100-page interim order, SEBI whole time member, SK Mohanty, also restrained Anil Ambani and others from “associating themselves with any intermediary registered with SEBI , any listed public company or acting directors/ promoters of any public company which intends to raise money from the public’’.

In the late night order, SEBI has also barred RHFL, Amit Bapna, Ravindra Sudhakar and Pinkesh R. Shah who were the company’s key managerial personnel in 2018-19, from capital market until further notice.

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SEBI action came after it received several complaints of siphoning off or diversion of funds of RHFL by the promoters and management.

SEBI investigation

SEBI said its investigation brought to light as to how Anil Ambani, the Promoter/Chairman and the person under whose control and influence the Company has acted), has conducted himself in exceeding his remit by sanctioning loans in gross deviations of norms (internal as well as regulatory)

"Looking at the conduct and propensity of the Company to indulge in such activities of diversion of funds and misrepresentation of books of accounts, falsification of financial statements resulting into non-disclosure of true & fair information to the public at large, and also considering the collective misconduct exhibited by the Key Managerial Persons of the company, there is an urgent need that the company should be prevented from pursuing such despicable activities which are visibly in violation of securities laws," it said in the order.

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