New Delhi: Securities and Exchange Board of India (SEBI India) imposes a fine of Rs 1 Crore on Jai Anmol Ambanithe merchant’s son Anil Ambaniwithout conducting proper due diligence while sanctioning General Purpose Corporate Loan (GPCL) Reliance Home Finance.
Reliance Home Finance’s former chief risk officer Krishnan Gopalakrishnan was also fined Rs 15 lakh for his role in the approval process.
Both were ordered to pay fines within 45 days.
“Notifier 1, as a non-executive director of the company, has taken the company in his own direction and has gone too far in his role as director. In doing so, Notifier 1 gives a hint of proactiveness and is absolutely not In line with the interests of the company.
The regulator further noted that Jai Anmol Ambani, who served on the boards of Reliance Capital and Reliance Home Finance and was also a director of other Reliance ADAG group companies that subsequently lent funds, “did not make any disclosures to other Reliance ADAG group companies regarding the entire GPCL loan and these GPCL entities.” On-lending by companies including Reliance Capital Limited.
SEBI also stated that Gopalkrishnan approved several GPCL loans in his capacity as chief risk officer and was aware of material discrepancies recorded in the credit approval memos for various loans recommended by him.
Last month, SEBI imposed a five-year ban on stock market trading on Anil Ambani, three key officials of his company and 23 associated companies. The investigation conducted by SEBI revealed orchestrated financial malpractices by Anil Ambani and his associates involving the transfer of funds in the guise of loans to entities associated with Anil Ambani, leading to serious violations of financial regulations.
Reliance Home Finance’s former chief risk officer Krishnan Gopalakrishnan was also fined Rs 15 lakh for his role in the approval process.
Both were ordered to pay fines within 45 days.
“Notifier 1, as a non-executive director of the company, has taken the company in his own direction and has gone too far in his role as director. In doing so, Notifier 1 gives a hint of proactiveness and is absolutely not In line with the interests of the company.
The regulator further noted that Jai Anmol Ambani, who served on the boards of Reliance Capital and Reliance Home Finance and was also a director of other Reliance ADAG group companies that subsequently lent funds, “did not make any disclosures to other Reliance ADAG group companies regarding the entire GPCL loan and these GPCL entities.” On-lending by companies including Reliance Capital Limited.
SEBI also stated that Gopalkrishnan approved several GPCL loans in his capacity as chief risk officer and was aware of material discrepancies recorded in the credit approval memos for various loans recommended by him.
Last month, SEBI imposed a five-year ban on stock market trading on Anil Ambani, three key officials of his company and 23 associated companies. The investigation conducted by SEBI revealed orchestrated financial malpractices by Anil Ambani and his associates involving the transfer of funds in the guise of loans to entities associated with Anil Ambani, leading to serious violations of financial regulations.
