Since market regulator Sebi barred industrialist Anil Ambani, brother of Mukesh Ambani, from the securities market, shares of his firms have been declining. Even on Tuesday, shares of Reliance Power and Reliance Home Finance Ltd continued to hit their lower circuit limits.
The stock of Reliance Power tumbled 4.98 per cent to Rs 31.10 -- its lower circuit limit -- on the BSE. Shares of Reliance Home Finance Ltd dropped 4.95 per cent to hit the lower circuit limit of Rs 4.03. However, the stock of Reliance Infrastructure ended 0.68 per cent higher at Rs 207.85.
Shares of Reliance Home Finance Ltd, Reliance Power, and Reliance Communications had hit their lower circuit limits on Monday as investors continued to desert the counters. Reliance Infrastructure, Reliance Home Finance, and Reliance Power had slumped on Friday also. The stock of Reliance Home Finance and Reliance Power had hit lower circuit limits on Friday.
Sebi has imposed a penalty of Rs 25 crore on Ambani and restrained him from serving as a director or key managerial personnel (KMP) in any listed company or Sebi-registered entity for five years. It banned him from the securities market for five years on charges of diversion of funds.
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Besides, a fine ranging Rs 21-25 crore has been levied on 24 entities. Also, the regulator barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it.
In its probe, Sebi found that Anil Ambani, with the help of RHFL's KMPs -- Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah -- have orchestrated a fraudulent scheme to "siphon off" funds from RHFL by disguising them as loans to entities linked to him.
(With inputs from PTI)
