SEBI on Friday restricted Reliance Home Finance and Anil Ambani from the stock market
New Delhi:
The Securities and Exchange Commission of India (SEBI) on Friday banned Reliance Home Finance Limited (RHFL), industrialist Anil Ambani and three other individuals from the stock market for allegedly siphoning money from the company. .
The other three individuals are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
In the 100-page temporary order, the regulator also restricts individuals from “associating themselves with any SEBI-registered intermediary, any listed public company, or acting directors or persons.” promotion of any public company that intends to raise money from the public until further notice”.
This order, regarding the allegation of extorting funds from the company, has been approved for a total of 28 individuals and entities (notice).
The focus of the SEBI investigation is a broad look at the manner in which loans were disbursed by the RHFL between 2018-19 to a number of institutions.
The market regulator notes that the roots of the current proceedings can be traced back to multiple sources, in addition to a letter from Price Waterhouse & Co to RHFL announcing its resignation. statutory auditors of the company; and the complaints received by SEBI alleging the extraction/diversion of RHFL funds by the company’s promoters and management.
There have been numerous cases of fraudulent tracking returns (FMRs) from banks alleging that funds borrowed by RHFL from various lending institutions were partially used to repay, the regulator said. the loans.
It is also complained that many connected parties and companies with weak financial resources have been used as conduits to extract funds from RHFL to entities related to the promoter of Reliance Capital, this order said.
“It should be noted that an individual Anil Ambani, who controls the company due to his position as promoter and controlling shareholder by holding his shares directly and indirectly, is considered real currently unregulated powers …”, SEBI said.
The order notes that the company’s Key Managers (KMPs) such as chief executive officer and CEO Ravindra Sudhalkar and chief financial officers (CFOs) – Amit Bapna and Pinkesh R Shah – “instead of putting such misconduct to notice by management or Regulators, found to be closely related to Mr. Ambani, in extracting corporate loans to group companies promote other financial weakness. .
The number of loans disbursed by RHFL under the General Purpose Business Loan has grown exponentially from around Rs 900 on March 31, 2018 to around Rs 7,900 on March 31, 2019, the order said. .
The announcements included Adhar Project Management and Consultancy Private Ltd, Indian Agri Services Pvt Ltd, Phi Management Solutions Pvt Ltd, Arion Movie Productions Pvt Ltd, Citi Securities and Financial Services Pvt Ltd, Deep Industrial Finance Ltd, Azalia Distribution Pvt Ltd and Vinayak Ventures Pvt Ltd.
Gamesa Investment Management Pvt Ltd, Medybiz Pvt Ltd, Hirma Power Ltd, Tulip Advisors Pvt Ltd, Mohanbir Hi-Tech Build Pvt Ltd, Netizen Engineering Pvt Ltd and Crest Logistics and Engineers Pvt Ltd (now known as Cle Pvt Ltd) are among them notifications .
Other announcements were Reliance Unicorn Enterprises Pvt Ltd, Reliance Exchange next Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, Reliance Broadcast Network Ltd, Reliance Big Entertainment Pvt Ltd and Reliance Capital Ltd.
The regulator noted that the preliminary observations contained in the order were made on the basis of the documentation available on file and that the preliminary findings would also be considered a notice of cause.
However, it also clarifies that the restriction that applies to the RHFL should not be in the way of any approved or approved restoration solution/plan, under any law.
