The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 1 crore on Jai Anmol Ambani, the son of industrialist Anil Ambani, for alleged irregularities related to Reliance Home Finance.
The regulator claims that Jai Anmol, in his capacity as a non-executive director on the board, failed to exercise due diligence in the company's lending practices.
Specifically, he is accused of approving unsecured loans that contributed to financial misconduct within the organization.
Sebi's investigation revealed that Jai Anmol did not conduct reasonable due diligence regarding the general purpose working capital (GPCL) lending and subsequent loans to other entities within the Reliance Anil Dhirubhai Ambani Group (ADAG), including Reliance Capital.
The allegations detail that he approved unsecured loans of Rs 20 crore to Visa Capital Partners and another Rs 20 crore to Accura Production Pvt Ltd.
In his defense, Jai Anmol stated that he could not recall the context of the emails in question and argued that his responses were merely acknowledgments, not formal approvals.
However, Sebi countered this claim, asserting that his emails contained explicit requests for approval and that his replies indicated consent.
The regulator concluded that he was misrepresenting his involvement in the situation to diminish his role in the alleged misconduct.
Sebi further asserted that Jai Anmol was actively engaged in the day-to-day operations of the company and that his claim of being uninvolved could not be substantiated.
This scrutiny follows Sebi's previous actions against Anil Ambani, who was barred from the securities market for five years last month, alongside a fine of Rs 25 crore.
Anil Ambani and 24 other entities were implicated in what Sebi described as a fraudulent scheme that diverted funds from Reliance Home Finance five years ago.
As part of the penalties, he is also restricted from holding key managerial or directorial roles in any listed company or market intermediary during this period.-+
