On Monday, the stock fell by another 5%, hitting its lower limit at ₹32.73. This decline follows an order by SEBI that restricted Anil Ambani and 24 others from the securities market for five years due to fund diversion from Reliance Home Finance Ltd.
SEBI also fined Anil Ambani ₹25 crore and barred him from holding any position in listed companies or market intermediaries for five years. Reliance Power clarified that it was not involved in these SEBI proceedings and that the order has no impact on its business. Anil Ambani had already resigned from Reliance Power’s board in 2022.
Previously, there were rumors that Adani Power was in talks to acquire a former RPower thermal power project, but Reliance Power declined to comment on such speculations.
On the technical front, the stock has support at ₹30, with resistance around ₹38. Analysts suggest that the stock might consolidate at around ₹30.50, and a breach below ₹28.50 could lead to further declines. The expected trading range is between ₹30 and ₹40 in the short term.
The stock is currently trading below its 5-day and 10-day moving averages but above its longer-term averages. Its 14-day RSI stands at 52.99, indicating neither overbought nor oversold conditions. The company reported a reduced net loss of ₹97.85 crore for the June 2024 quarter, compared to ₹296.31 crore in the same period last year, with an increase in total income to ₹2,069.18 crore.
Securities markets regulator, the Securities and Exchange Board of India (SEBI), has taken decisive action against Anil Ambani, Chairman of the ADAG group, and 24 other entities, including former key managerial personnel of Reliance Home Finance Ltd (RHFL). SEBI has banned these individuals from participating in the securities market for five years, citing their involvement in a significant diversion of funds from RHFL.
In addition to the ban, SEBI has imposed a substantial fine of Rs 25 crore on Ambani for his role in orchestrating a fraudulent scheme that not only harmed RHFL’s stakeholders but also undermined trust in the governance of regulated financial entities. The total penalties levied on Ambani and the other 24 entities amount to more than Rs 625 crore.
This action stems from an extensive investigation by SEBI into RHFL, a non-banking finance company specializing in housing loans, loans against property, and construction finance. The probe was initiated after SEBI received multiple complaints and reports alleging fund diversion and siphoning within the company.
The Securities and Exchange Board of India (SEBI) has imposed a significant penalty of Rs 25 crore on Anil Ambani and has prohibited him from serving as a director or Key Managerial Personnel (KMP) in any listed company or SEBI-registered entity for a period of five years. This action is part of a broader crackdown following a thorough investigation into alleged financial misconduct at Reliance Home Finance Ltd (RHFL).
Additionally, SEBI has levied fines ranging from Rs 21 crore to Rs 25 crore on 24 other entities involved in the case. Reliance Home Finance itself has been barred from accessing the securities market for six months and fined Rs 6 lakh.
The investigation, covering the fiscal year 2018-19, was triggered by multiple complaints of fund diversion and siphoning at RHFL. SEBI’s probe uncovered a fraudulent scheme orchestrated by Anil Ambani with the assistance of key managerial personnel, including Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah. This scheme involved diverting funds from RHFL by disguising them as loans to entities closely associated with Ambani.
Despite strong directives from the RHFL board to halt these questionable lending practices and conduct regular reviews of corporate loans, the company’s management disregarded these instructions. SEBI’s 222-page order highlighted the reckless approach taken by RHFL’s management and promoter in approving loans worth hundreds of crores to companies with minimal assets, cash flow, net worth, or revenue—a move that suggests a deliberate intent to misappropriate funds.
The situation worsened when many of these borrowers, closely linked to RHFL’s promoters, defaulted on their loans. This led to RHFL’s inability to meet its own debt obligations, ultimately resulting in the company being placed under the RBI Framework for resolution, leaving public shareholders in a precarious position.
