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The shares of Anil Ambani-backed Reliance group companies experienced a sharp decline today following the Securities and Exchange Board of India’s (Sebi) five-year market ban on chairman Anil Ambani and 24 other entities. The regulatory action, which includes a ₹25-crore fine on Ambani, stems from an investigation into alleged fund diversion at Reliance Home Finance Ltd (RHFL).
As of 10:35 am, on the BSE, Reliance Power saw the steepest fall, dropping 4.99% to ₹32.73. Reliance Home Finance plummeted 4.93% to ₹4.24, while Reliance Communications slid 4.92% to ₹2.32. Reliance Naval and Engineering declined 4.62% to ₹2.27, and Reliance Capital fell 4.46% to ₹11.79. Bucking the trend, Reliance Infrastructure marginally gained 0.24% to ₹212.20.
The SEBI order, which imposes total penalties exceeding ₹625 crore on all involved entities, follows an investigation into RHFL’s lending practices during FY2018-19. The regulator found a significant increase in loans to corporates with weak financials, raising concerns about fund diversion.
In response, Reliance Power and Reliance Infrastructure issued statements clarifying that the Sebi order has no direct impact on their operations, as they were not parties to the proceedings and that Anil Ambani had resigned from the board of directors.
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