Capital marekt regulator Securities and Exchange Board of India (SEBI) has barred Reliance Home Finance, its promoter Anil Ambani, and three others from buying, selling, or dealing in securities, either directly or indirectly, until further orders are issued.
Until further orders, Anil Ambani and others are prohibited from associating with any SEBI-registered intermediary, any listed public company, or acting as Directors/Promoters of any public company that intends to raise money from the public, according to SEBI's interim order issued late Friday evening.
The root of the current proceedings, according to an interim order issued by S K Mohanty, Whole Time Member of SEBI, can be traced to multiple sources, including a letter from Price Waterhouse & Co. ("PWC") to Reliance Home Finance Limited (RHFL), informing them of their resignation as the Company's Statutory Auditor, citing various grounds and reasons.
Certain complaints received by the Securities and Exchange Board of India alleging syphoning off/diversion of RHFL funds by the company's promoters and management, as well as receipt of multiple Fraud Monitoring Returns (FMRs) from banks alleging, among other things, that funds borrowed by RHFL from various lenders were partly used towards loan repayments, etc.
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