Regulatory action follows violations of procedures in approving corporate loans and failure to adhere to due diligence protocols.
The Securities and Exchange Board of India (SEBI) has imposed a fine of INR 10 million (USD 119,153) on Jai Anmol Ambani, a non-executive director of Reliance Home Finance Limited, for failing to uphold his responsibilities as a board member.
Ambani was found to have approved general purpose corporate loans (GPCLs) without adhering to the required procedures, violating securities laws.
The SEBI investigation revealed multiple irregularities in the GPCLs, including deviations from established processes, lack of proper documentation, negligence in due diligence, and loans granted to financially unstable entities. The loans were also linked to recipients with common addresses, directors, email IDs, and overlapping business interests, raising concerns over conflicts of interest.
SEBI’s order noted that Ambani had approved the loans despite clear instructions from the board to refrain from doing so.
Krishnan Gopalakrishnan, the Chief Revenue Officer of Reliance Home Finance, has also been fined INR 1.5 million in connection with the same matter.
SEBI has granted a 45-day period for the online payment of the fines.
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