Stocks of Anil Ambani-owned companies tumbled on Friday afternoon after the Securities and Exchange Board of India barred the industrialist and 24 entities under him from the securities markets for five years.
The markets regulator fined Ambani Rs 25 crore, and also restricted him from associating with any other listed company in any capacity, including directorial power.
The stringent action against Ambani and the companies came as SEBI found diversion of funds from Reliance Home Finance Ltd. Investigation revealed sharp increase in loans and procedural flaws.
SEBI Bars Anil Ambani From Capital Market For Five Years
Shares of Reliance Infrastructure Ltd. slumped over 14% to become the worst stock among its peers. It declined 14.31% to Rs 201.99 apiece, the lowest level since Aug. 7. The company is barred from accessing the securities markets for six months, and fined Rs 6 lakh.
The second worst hit stock was Reliance Home Finance Ltd., which declined as much as 5.12% to Rs 4.45 apiece, marking the lowest level since Aug. 21.
Reliance Power Ltd. shares declined 5.01% to Rs 34.48 during the day.
Reliance Capital Ltd., Reliance Communication Ltd.'s and Reliance Naval and Engineering Ltd. shares remained suspended from trading on National Stock Exchanges and BSE Ltd.
Why Anil Ambani Has Been Banned From Markets — NDTV Profit Explains
Market capitalisation of Anil Ambani's group of companies declined Rs 1,752 to Rs 22,393.22 crore as of 12:46 p.m.
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