Anil Ambani Banned from Trading for 5 Years and Hit with Rs 25 Crore Fine by SEBI – What’s the Full Story?

SEBI’s 222-page order points out serious failures in corporate governance within RHFL during the financial year 2018-19. Despite warnings from the board, the management, under Ambani’s guidance, continued to approve risky loans. These loans, amounting to Rs 6,187.78 crore, resulted in significant losses for RHFL and its shareholders.

In addition to Ambani, SEBI’s order fines several former RHFL officials. Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah have been fined Rs 27 crore, Rs 26 crore, and Rs 21 crore, respectively. Companies like Reliance Unicorn Enterprises and Reliance Big Entertainment Pvt Ltd also face fines of Rs 25 crore each.

The total fines for all involved parties add up to around Rs 624 crore. RHFL itself has been fined Rs 6 lakh and banned from the stock market for six months.

This final order follows SEBI’s temporary action in February 2022, reinforcing the seriousness of the violations. While a response from Anil Ambani and the Reliance ADA Group is still awaited, the case underlines the importance of strong corporate governance and the serious consequences of financial wrongdoing in the market.