Sebi imposes Rs 1 crore fine on Jai Anmol Ambani in Reliance Home Finance case

The Securities and Exchange Board of India fined Jai Anmol Ambani ₹1 crore for irregularities in Reliance Home Finance, alleging he approved ₹40 crore in unsecured loans. Sebi asserted he misrepresented his involvement in the company’s operations.

What are the Allegations?

• The regulator alleged that Jai Anmol, being a non-executive director on the board of Reliance Home Finance and other Reliance ADAG group companies where the funds were onward lent, did not exercise reasonable due diligence with respect to the entire GPCL(general purpose working capital ) lending.  
• The onward lending by these GPCL entities to other Reliance ADAG group companies including Reliance Capital.
• Sebi said that Jai Anmol gave approval for an unsecured loan of ₹20 crores to Visa Capital Partners and ₹20 crore to Accura Production Pvt Ltd.

About Jai Anmol Ambani

• Jai Anmol Ambani – the elder son of businessman Anil Ambani, was the director of RHFL between April 2018 and May 2019. 
• Meanwhile, as per the investigation report, there was no observation in the show-cause notice which could point out anything that transpired in some meetings at RHFL that could “bring (Jai Anmol) under the purview of regulatory intervention.

About Securities and Exchange Board of India (SEBI)

• The Securities and Exchange Board of India (SEBI) is the principal regulator of the securities market in India.
• It functions as a statutory body under the Ministry of Finance, Government of India.

Objectives of SEBI

• To act as the watchdog of the Indian capital market
• To protect the interests of investors in securities
• To promote and regulate the securities market

Headquarter

• The Headquarters of SEBI is located in Mumbai.
• It also has 4 regional offices, located in Ahmedabad, Kolkata, Chennai, and Delhi.

Roles and Functions of SEBI

• Market Regulation
• Market Development
• Enforcement of Regulatory Norms
• Investors’ Protection