Sebi bans Anil Ambani, RHFL, 3 others from market

Market regulator Sebi on Friday restrained Reliance Home Finance Ltd (RHFL), industrialist Anil Ambani and three other individuals from the securities market until further orders for alleged fraudulent activities related to the company. The three other individuals are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.

In an interim order issued on Friday, Sebi also restrained the individuals 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 till further orders.”

“The way the chairman of the group, the CEO and the CFOs have conducted themselves in extending gratuitous treatment to the GPCL (general purpose corporate loan) borrower entities, gives a clear indication that the destination of the funds lent by RHFL was already known to the noticee numbers 1 to 5 (RHFL, Anil Ambani, Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah) at the time of sanctioning itself,” the Sebi order said.

“It is apparent that under a well drafted scheme, these Noticees devised an artifice to ensure the siphoning of funds to the benefit of the promoter related entities by layering the lending operations through GPCL borrower entities,” Sebi said. Under the circumstances, concealing such material information which were apparently very much in the knowledge of aforesaid KMPs (key managerial persons), cannot be said to be an act that can lead to disclosure of true and fair picture of the affairs of the company in the financial statements, it said.

By covering up such loan transactions with potentially promoter linked parties, the CEO has also mispresented before the Risk Management Committee (RMC) that such GPC loans were in the category of ‘construction finance’ or ‘exposure to commercial real estate’. “However, in reality, none of the said GPC loan funds was sanctioned or ever used for the said purposes, as stated by the CEO before the RMC,” Sebi said.

With Thanks Refrence to: https://indianexpress.com/article/business/companies/sebi-bans-anil-ambani-rhfl-3-others-from-market-7768470/