Sibi refuses to call Anil Ambani’s settlement for bank’s investments

The Securities and Stock Exchange Council (SEBI) rejected a settlement proposal from the industrial Anil Ambani regarding the fees related to investments at the Bank of yes, which exposes it to the risk of a penalty of $ 208.4 million. Sebi’s investigation revealed that the ABani’s Rellence MUTUAL Fund has invested $ 245.3 million in YES Bank’s additional bonds before the 2020 bank insolvency.

It was claimed that the investments made between 2016 and 2019 were dependent on the loans granted by yes bank to other Ambani Group companies. The results of Sebi indicate that these investments were characterized as an “bilateral relationship deal”, involved in Anilol Ambani in the practice of unjustified influence on investment decisions through Sundeep Sikka, the Fund CEO.

Sebi stressed, after refusing the settlement call, the great loss of the investor wealth resulting from the fund’s procedures, which is estimated at $ 208.4 million. The issue is rooted in the alleged lack of compliance with internal policies during investment decisions, which had a “widespread impact on the market.”

The organizational body informed Ambani and his son of the upcoming directives to compensate the affected investors. Additional procedures may include the imposition of financial penalties. “Sebi also shared its findings with the Directorate of Enforce,” said two sources with direct knowledge of the issue, according to a Reuters report.

In a broader context, Anil Ambani faces the increasing audit after the yes bank insolvency, a formerly involved lender with Ambani companies. This position drew attention from the authorities, with recent investigations into a plan to hide $ 342.3 million loans from yes bank.

The charges against Ambani extend to the executive team of the Fund, including CEO, CEO of Investment, and former risk head, who also submitted a $ 1.08 million settlement request, is currently reviewing. SEBI documents noted, “There were lapses and lack of compliance with the commitment to the policy and internal procedures shown, as well as bypassing the risk/internal control framework while enhancing sub -identification and making investment.”

The Nippon Life Insurance Fund was sold in 2019, and it precedes the alleged misconduct associated with investments.

(With Reuters inputs)