Anmol Ambani, son of Anil Ambani and nephew of Asia’s richest man Mukesh Ambani, has been fined ₹1 crore by the Securities and Exchange Board of India (SEBI). The penalty is linked to a violation in a corporate loan case concerning Reliance Home Finance, where Anmol serves on the board. This action by SEBI also involves the company’s Chief Risk Officer, Krishnan Gopalakrishnan, who has been fined ₹15 lakhs.
Loan Approval Sparks SEBI Action
The fine stems from an incident in February 2019, where Anmol Ambani approved a ₹20 crore loan to Acura Productions Private Limited. This approval went against a direct instruction from the board of Reliance Home Finance, which had decided to halt any further corporate loan approvals just three days earlier, on February 11, 2019.
SEBI found that Anmol Ambani did not comply with the company’s internal rules regarding corporate loans. The market regulator also pointed out that proper procedures were not followed in investigating the loan, leading to this significant penalty.
SEBI’s Investigation and Ruling
SEBI’s official report highlights the breach in governance and decision-making within Reliance Home Finance. The regulator found that Anmol Ambani, despite holding a key position, did not adhere to the board’s instructions, which were designed to control financial risks. The market watchdog also observed that due diligence was not properly conducted before approving the loan, which intensified the penalty.
Alongside Anmol Ambani, Chief Risk Officer Krishnan Gopalakrishnan also faces repercussions for failing to act by the board’s directives. Both individuals have been ordered to pay their respective fines within 45 days.
Impact on Reliance Home Finance
Reliance Home Finance shares may experience fluctuations as a result of this news. Recently, the stock has been performing well, with a surge on Monday when it saw an upper circuit and ended the day at ₹4.59 with a 4.79% rise. The fine on Anmol Ambani could affect market sentiment, which may reflect on the stock’s performance in the coming days.
This latest SEBI ruling highlights the importance of adhering to corporate governance rules and ensuring that key decisions align with company policies.
