Cash News
SEBI also fined Krishnan Gopalakrishnan, the Chief Risk Officer of Reliance Housing Finance, ₹15 lakh.
Both individuals must deposit the amounts within 45 days, according to SEBI’s order.
The order follows SEBI’s August decision to prohibit Anil Ambani and 24 others from the securities market for five years in a case involving the diversion of Reliance Home Finance Ltd’s funds. SEBI had previously imposed a ₹25 crore fine on Anil Ambani.
In its recent order, SEBI noted that Anmol Ambani, a board member of Reliance Home Finance, approved general-purpose corporate loans despite the board’s clear directive against such approvals.
On February 14, 2019, he authorised a loan of ₹20 crore to Accura Productions Private Ltd, even after the board instructed management on February 11, 2019, not to issue any further GPCL loans.
SEBI stated that Anmol Ambani, as a non-executive director, acted contrary to the interests of shareholders and failed to maintain high ethical standards.
“The noticee 1 (Anmol Ambani), as non-executive director of the company, has taken the company in his own direction and has gone overboard in his role as director. Noticee 1 in doing so, gives a hint of being motivated and definitely not in the interests of the shareholders and has not acted with due care and diligence, and has not maintained high ethical standards,” the SEBI said.
SEBI also indicated that Gopalakrishnan approved various GPCL loans and was aware of significant deviations noted in the credit approval memos for loans he recommended.
As part of the senior management, Gopalakrishnan was expected to adhere to due process and act in good faith for the benefit of all stakeholders.
Both Anmol Ambani and Gopalakrishnan violated SEBI’s Listing Obligations and Disclosure Requirements (LODR) rules.
(Edited by : Ajay Vaishnav)