Key Points
Markets regulator Sebi on Monday imposed a penalty of Rs 1 crore on Anmol Ambani, son of industrialist Anil Ambani, for his failure to exercise due diligence while approving general-purpose corporate loans in Reliance Home Finance matter...
The order came after Sebi, in August, barred Anil Ambani and 24 others from the securities market for five years in a case pertaining to diversion of Reliance Home Finance Ltd's funds..
In its order on Monday, Sebi noted that Anmol Ambani, who was on the board of Reliance Home Finance, had approved general-purpose corporate loans or GPCL loans, and that too after the company's board of directors had given clear direction not to go ahead with any approval of such loans...
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, Sebi said.. Anmol, who was on the board of Reliance Capital and Reliance Home Finance and also a director in the other Reliance ADAG group companies where the funds were onward lent, did not exercise reasonable due diligence with respect to the entire GPCL lending and the onward lending by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital, it added...
While being a part of the senior management of Reliance Housing Finance, Gopalakrishnan should have followed due process, complied with the code of conduct of the company, and acted with due care and diligence in performing his duties and acted in good faith, in the interest of all stakeholders of the company, Sebi said...
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